AirAsia X Posts Eighth Straight Quarterly Loss
Malaysian long-haul budget airline AirAsia X reported its eighth consecutive quarterly net loss, mainly hurt by higher aircraft operating expenses and foreign exchange losses.
The carrier booked a loss of MYR288.2 million ringgit (USD$68.42 million) for July-September, wider than the MYR210.85 million ringgit of the same quarter a year earlier.
Revenue rose 13.5 percent to MYR793 million ringgit mainly due to higher secured chartered contracts, freight and cargo sales.
To improve profitability, AirAsia X has paused the expansion of its fleet and opted to leverage existing routes rather than opening new ones.
The airline said it expects improved operational performance in the fourth quarter and continuing into next year.
"However, the depreciation of the Malaysian ringgit remains a key concern as a large portion of AirAsia's X borrowings and operating costs are denominated in US dollars," it said.
The ringgit has fallen nearly 20 percent this year due in part to weak global oil prices.
AirAsia X operates mainly on routes to Australia, China and Japan.
Parent AirAsia is scheduled to announce third-quarter earnings after market close on Thursday.