AIRASIA X BHD
By PublicInvest Research
Neutral (maintain)
Target price: 84 sen
AIRASIA X (AAX) reported 2014 first-quarter net loss of RM11.3mil, compared with first quarter 2013 net profit of RM50.2mil. In the preceding quarter, AAX had a net loss of RM131.3mil.
PublicInvest Research said that excluding exceptional items such as forex (foreign exchange) gain or loss and tax incentives, its first-quarter core net loss was RM40mil. (First quarter 2013 core net profit was RM14.8mil).
The loss was expected as AAX was hit by stiff competition from Malaysia Airlines (MAS), particularly on the Australian routes, the research house said.
While passenger load factor improved to 85.8% in the first quarter, revenue per available seat kilometer fell 12.4% year-on-year to 12.1 sen amid a 63.1% jump in seat capacity.
The research house said that while it saw some stabilisation signs in AAX’s first-quarter performance, it remained cautious on continued fare dumping by MAS, which would weigh down AAX’s earnings, particularly on the Australian routes.
By PublicInvest Research
Neutral (maintain)
Target price: 84 sen
AIRASIA X (AAX) reported 2014 first-quarter net loss of RM11.3mil, compared with first quarter 2013 net profit of RM50.2mil. In the preceding quarter, AAX had a net loss of RM131.3mil.
PublicInvest Research said that excluding exceptional items such as forex (foreign exchange) gain or loss and tax incentives, its first-quarter core net loss was RM40mil. (First quarter 2013 core net profit was RM14.8mil).
The loss was expected as AAX was hit by stiff competition from Malaysia Airlines (MAS), particularly on the Australian routes, the research house said.
While passenger load factor improved to 85.8% in the first quarter, revenue per available seat kilometer fell 12.4% year-on-year to 12.1 sen amid a 63.1% jump in seat capacity.
The research house said that while it saw some stabilisation signs in AAX’s first-quarter performance, it remained cautious on continued fare dumping by MAS, which would weigh down AAX’s earnings, particularly on the Australian routes.
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