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AirAsia X Net Losses Higher At RM288m In Q3 due To Forex

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KUALA LUMPUR: Medium-haul low-cost carrier AirAsia X posted net losses of RM288.19mil in the third quarter ended Sept 30, 2015 as it was impacted by higher expenses and foreign exchange losses.

It said on Wednesday the net losses were higher when compared with the RM210.85mil a year ago. Loss per share was 9.1 sen compared with 8.9 sen.

AAX said its revenue was higher by 13.4% at RM793.01mil compared with RM698.76mil a year ago. Loss per share was 9.1 sen compared with 8.9 sen.

During the quarter, its operating loss was only RM31.12mil compared with RM132.63mil a year ago, after managing to reduce its aircraft fuel expenses, and those for maintenance, overhaul and user charges but there was a sharp increase in aircraft operating lease expenses.

Aircraft fuel expenses were reduced to RM282.44mil from RM368.49mil a year ago while maintenance expenses were slightly lower at RM186.87mil from RM195.17mil. Aircraft operating leases expenses were much higher at RM181.75mil from RM82.68mil.

Despite managing to reduce the operating losses, it was hit by unrealised foreign exchange losses of RM241.27mil compared with RM48.21mil a year ago due to the weakening ringgit against major foreign currencies.

For the nine months ended Sept 30, 2015, its net losses were RM561.82mil compared with RM350.92mil in the previous corresponding period. Revenue was slightly higher at RM2.208bil from RM2.119bil.

“Operationally, the company expects improved operational performance in the 4Q15 and to continue into the year 2016 as seen in the forward loads which are higher than in the prior year 4Q14.

“Average fare for the 4Q15 is higher than in the prior year and passenger numbers are expected to be particularly strong in November and December during the year end holiday period.

However,the depreciation of the Malaysian Ringgit remains a key concern as a large portion of AAX’s borrowings and operating costs are denominated in US Dollars,” it said.

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