AirAsia Group (AAGB) Q3 2024 earnings summary

Executive summary

• Revenue increased 23% year-over-year to RM795 million, driven by a 34% rise in passengers and strong load factor of 84%.

• Net profit reached RM121.6 million, mainly due to net foreign exchange gains from the appreciation of the Malaysian Ringgit.

• Ancillary revenue surged nearly 40% to RM267.5 million, with per passenger ancillary at RM247, up 4% year-on-year.

• Operational profitability maintained for nine consecutive quarters since relaunch.

• Full fleet reactivation is nearly complete, with 17 aircraft online and one more to be added by early 2025.

Financial highlights

• EBITDA normalized at RM76.2 million, reflecting reversals of travel voucher provisions in 3Q 2023.

• Net operating profit for the quarter was close to RM3 million, despite a soft season.

• Average fare declined 14% year-on-year to RM443 due to increased capacity and new routes.

• TAAX (associate) posted RM55 million net profit and RM300.7 million revenue, with a strong average fare of RM613.

• CASK at 13.98 sen, up 20% year-on-year, with CASK ex-fuel at 6.57 sen, lowest among peers.

Outlook and guidance

• Fourth quarter expected to be strong, with high load factors in Australia, Japan, Korea, India, and Kazakhstan.

• Full fleet reactivation expected by Q1 2025, with plans to induct an additional aircraft by mid-2025.

• Anticipated growth in ancillary revenue through enhanced offerings and targeted marketing.

• Focus on expanding network, especially in China, Central Asia, Africa, and potential future routes to Europe.

• Fundraising exercise in progress, pending regulatory approvals.