AirAsia Group and its associate AirAsia X saw their fourth-quarter earnings boosted by an uptick in ancillary revenue, even as fares declined with the return of capacity into market.
AirAsia, which is in the final leg of being divested from parent Capital A, saw its fourth-quarter ancillary revenue per passenger grow about 5.5% year on year, leading to a 5.8% rise in full-year ancillaries.
AirAsia X, meanwhile, saw quarterly ancillary revenue rise about 31% year on year. On a per passenger basis, ancillary revenue grew about 9%.
The rise in ancillaries helped offset the easing of yields during the quarter: AirAsia saw a 5% drop in average fares because of lower fares for new routes, while AirAsia X’s average fares fell 20% with the return of more capacity.
Still, the two carriers remained in the black during what they call the “seasonally busiest” period.
AirAsia, which has units in Malaysia, Thailand, Philippines, Cambodia and Indonesia, reported a positive EBITDA of MYR1.2 billion ($269 million), about four times higher compared to the previous year. AirAsia X reported a positive EBITDA of MYR120 million for the quarter, up 74% year on year.
This was on the back of a rise in revenue and passenger volumes: AirAsia’s revenues were up 8% year on year to MYR4.8 billion, on the back of a 9% increase in passenger volumes and 10% capacity growth.
As for AirAsia X, its quarterly revenue was up to 7% to MYR872 million, with more flights mounted and passengers carried.
The medium-haul operator reported a net profit of MYR22.6 million, a slight dip from the MYR27 million in the year-ago period, as it recorded small foreign exchange losses.
Also chalking up steep foreign exchange losses was AirAsia, which saw a steeper net loss for the quarter, at MYR2.2 billion compared to the loss of MYR322 million a year ago.
On a full-year basis, AirAsia posted a positive EBITDA of MYR3.15 billion, a two-fold increase year on year, with revenue up 39% to MYR18.9 billion. AirAsia X, meanwhile, saw its full-year EBITDA drop 30% to MYR461 million, due to the reversal of provisions in the previous financial year. Revenue was up 28% year on year to MYR3.2 billion.
