AIRASIA X Bhd’s (AAX) quarter two financial year 2025 (2QFY25) headline net profit jumped more than sevenfold year-on-year (YoY) to RM35.2 mil, primarily boosted by favourable foreign exchange (forex) gain.
Excluding non-recurring items, the core net loss for the quarter was estimated at RM1.7 mil, bringing the cumulative six months financial year 2025 (6MFY25) core net profit to RM44.1 mil.
“We expect air travel demand to continue growing robustly in 2H 2025, driven by favourable jet fuel prices, stronger Malaysian Ringgit, and new route expansions,” said Public Investment Bank.
In addition, maintenance and overhaul costs are expected to continue trending lower. We reiterate our Outperform call and PE-based target price of RM2.47.
2QFY25 revenue slipped 1.2% YoY to RM660.8 mil despite an increase in passenger volume (+6.2%) and seat capacity (+5.5%), while maintaining a strong and steady 83% passenger load factor. The decline was mainly due to a 11.6% drop in the average passenger fare to RM405.
This was attributed to seasonality and cautious travel sentiment related to earthquake and security concerns in Thailand, as well as fears stemming from a viral social media trend that linked to a manga predicting natural disaster in July 2025 in Japan.
This decline was partly offset by a 3.6% YoY growth in ancillary revenue per passenger, driven by higher passenger volumes and enhanced product offerings particularly in the duty free and merchandise segments.
2QFY25 net profit jumped more than sevenfold YoY to RM35.2 mil, boosted by forex gain of RM36.9 mil. Excluding this, a core net loss of RM1.7 mil was estimated for the quarter, pressured by seasonally weaker travel demand.
Nevertheless, the core net loss narrowed from RM5.7 mil in 2QFY24 despite lower revenue, mainly due to lower aircraft fuel expenses.
Malaysia’s aviation sector is expected to continue growing robustly in the second half of 2025, driven by improving economic conditions, government-backed tourism initiatives, competitive airfares, and expanding intra-regional travel. AAX plans to expand connections in Central Asia regions, with an emphasis on execution and profitability.
This includes the upcoming launch of flights to Istanbul, Turkey and Tashkent, Uzbekistan in 4Q25. The Group maintains a fleet size of 19 A330 aircraft, 18 of which are currently operational.
The reactivation of the final aircraft has been delayed due to global maintenance, repair, and overhaul (MRO) backlogs. —Aug 27, 2025
Main image: Skytrax
