EARNINGS of Philippines AirAsia, Inc. surged in the second quarter as the budget carrier ferried more passengers and increased inflight, duty-free and baggage revenues.
Malaysia-based AirAsia Group Berhad reported its second quarter financial performance yesterday, where it said the Philippine unit reached a profit after tax of P593.07 million in the April to June period, up 777% from last year.
Revenues likewise grew 38% to P7.51 billion, driven by a 22% increase to 2.225 million in the passengers it carried during the period.
Its load factor, or the measure of its aircraft utilization based on passengers on a plane against its capacity, also rose four percentage points to 91% in the second quarter.
“In terms of profitability, we are excited to see…the improved performance of AirAsia Philippines,” Bo Lingam, president of AirAsia Group for airlines, was quoted as saying in a statement.
“We are also steadily growing our traditional airline ancillary revenue,” he added, noting inflight, duty-free and baggage revenues recorded a 42% growth in the Philippines during the second quarter.
The budget carrier is aiming to swing to profit this year from posting a net loss of P2.11 billion in 2018. It is also hoping to hit revenues of P30 billion by end-2019.
“With our performance so far this year, we are positive on our target for all our ASEAN AOCs (air operator’s certificate) to be profitable this year,” Mr. Lingam said.
AirAsia Group currently has presence in the Philippines, Malaysia, Indonesia, India, Japan and Thailand.
AirAsia Philippines is adding three new aircraft in 2019 with a goal of expanding its fleet to 30 planes in the next two years, from the current 23. It is continuously adding new routes and destinations, with an ongoing application to fly to Guam.
AirAsia Philippines’ majority stakeholder, businessman Michael L. Romero’s F&S Holdings, Inc., is targeting to launch an initial public offering of the company before the year ends. — Denise A. Valdez