AirAsia X Bhd (AAX) released its 3QFY24 operating statistics, reporting a 34% YoY growth in traffic volume, outpacing the 27% YoY growth in Available Seat Kilometers (ASK). As a result, its passenger load factor (PLF) increased by 4.0 percentage points (ppts) to 84%, compared to 80% in 3Q23. This positive performance was achieved as more aircraft returned to service, coupled with higher flight frequency, effectively ramping up seat capacity. The AAX total fleet size increased to 18 A330s as of 30 Sep 2024, with 16 aircraft now activated and operational. In term of its network in 3QFY24, more than half of the routes offered daily flights, reflecting AAX’s focus on meeting high travel demand. We reintroduce our FY24-26F earnings forecasts following a temporary cessation of coverage. Our Outperform call is maintained, with target price of RM2.47 based on 7x FY25F EPS. AAX is scheduled to release its 3QFY24 results and passenger yield data on 29th Nov 2024.

• 3QFY24 operating statistics. During 3QFY24, Malaysia AAX (MAAX)’s traffic volume increased by 34.3% YoY to 1.08m passengers, while seat capacity increased by 26.7% YoY to 1.28m. As a result, PLF rose by 4.0ppts to 84%, compared to 80% in 3Q23. ASK increased by 16.5% YoY to 5.1bn, as management ramping up seat capacity through increased flight frequency, additional aircraft, and continued network expansion. MAAX’s total fleet size increased by one (1), bringing the total to eighteen (18) A330s, with sixteen (16) aircraft activated and operational. During the quarter, MAAX launched flights to Changsha, Medina, while also reintroducing its Taipei-Osaka route.

• Associates performance. Thailand AAX (TAAX) recorded a healthy PLF at 80% for the quarter, down marginally by 2.0ppts YoY. This decline was due to higher seat capacity which rose 2.4% YoY to 0.42m seats, while the number of passengers carried grew only marginally by 0.1% YoY to 0.34m passengers. During the quarter, TAAX launched flights to Nagoya in Japan, marking its fourth destination in this popular country for travelers. TAAX fleet size remained at eight (8) A330s, with seven (7) aircraft activated and operational.

Source: PublicInvest Research - 25 Oct 2024