AirAsia and its long-haul unit, AirAsia X, recorded higher earnings in the fourth quarter of 2024, mainly due to increased ancillary revenue. Despite lower fares caused by the return of capacity to the market, both carriers maintained profitability.
AirAsia, which is in the final stages of separation from parent company Capital A, saw a 5.5% year-on-year increase in fourth-quarter ancillary revenue per passenger. This growth contributed to a 5.8% rise in full-year ancillary revenue. AirAsia X, on the other hand, recorded a 31% increase in quarterly ancillary revenue, with a 9% rise in ancillary revenue per passenger.
AirAsia experienced a 5% drop in average fares due to lower pricing on new routes, while AirAsia X’s average fares fell 20% as more capacity returned. Despite these fare reductions, both airlines managed to stay in profit during their busiest season.
AirAsia, which operates in Malaysia, Thailand, the Philippines, Cambodia, and Indonesia, achieved an EBITDA of MYR1.2 billion ($269 million) in the fourth quarter. This figure was nearly four times higher than the previous year. AirAsia X reported an EBITDA of MYR120 million for the quarter, reflecting a 74% increase year on year.
Higher Revenue and Capacity Expansion
AirAsia’s revenue rose 8% year on year to MYR4.8 billion, supported by a 9% increase in passenger numbers and a 10% expansion in capacity. Meanwhile, AirAsia X reported a 7% revenue increase, reaching MYR872 million, as more flights were added and passenger numbers grew.
Although AirAsia X recorded a net profit of MYR22.6 million for the quarter, this was slightly lower than the MYR27 million reported a year earlier due to minor foreign exchange losses. AirAsia, however, posted a steeper net loss of MYR2.2 billion for the quarter, compared to a loss of MYR322 million in the previous year, largely due to higher foreign exchange losses.
Full-Year Performance and Revenue Growth
For the full year, AirAsia recorded an EBITDA of MYR3.15 billion, marking a two-fold increase from the previous year. Its annual revenue climbed 39% to MYR18.9 billion. Meanwhile, AirAsia X saw a 30% drop in full-year EBITDA, settling at MYR461 million, mainly due to the reversal of provisions in the previous financial year. However, its revenue increased by 28% year on year to MYR3.2 billion.
Both AirAsia and AirAsia X continue to expand their operations while adjusting fares and increasing ancillary revenue. These efforts have allowed them to maintain profitability despite ongoing market adjustments.
