As the biggest budget transporter by fleet in Asia, AirAsia revealed that they carried more passengers up to 14% increasing in the 2nd quarter compared to last year. The major market’s strong demand is the reason of the increasing.

 

The Increasing of Passengers Amounts 

In the same quarter of the previous year, AirAsia stated that they carried about 13.91 million passengers. Meanwhile, the airline has carried about 15.81 million of travelers in April to June this year. The increasing of the capacity is about 11%, whilst the measurement of the fullness of the planes with passengers (or also called load factor) increased to 88% (three points of percentage).

 

Based on the most recent preliminary statistics of AirAsia, analysts stated that the increasing is higher than the expectation even though the season in the second quarter is weaker. At the end of August 2017, the airline will announce the financial results of the company in the second quarter.

 

An analyst from MIDF Amanah Investment Bank named Tay Yow Ken stated that they expect the next 2Q earnings will be higher than the last year because the fuel cost is also getting higher. It certainly will increase the flight fares too. Overestimation has been made by the market for the aviation industry competition.

 

As long as the quarter, the flights operation of AirAsia has achieved 96,540 with 180 planes and two of them fled to Japan. The new routes are added five in Malaysia, seven in Philippines, and two in India and Thailand. In the second quarter, the revenue seems to be higher because of the high season and the low base factor. The higher fuel cost will never be a problem.

Higher Amounts of Passengers Carried by AirAsia in 2Q

 

The Planes Additions

To support the fleet expansion plan and fulfils the regional demand, AirAsia ordered 14 new planes of A320ceo from the Airbus. The planes worth more than $1.5 billion and the orders also make the product line sold more than 592 airplanes.

 

The expansion of the armada is done in the same time with the lower prices of fuel and also the increasing of demand in Asia. Based on the data of International Air Transport Association, the passenger traffic increase up to 10.5% between January and May (measured by revenue passenger kilometers) compared to the last year traffic.

 

On the other hand, the costs of jet fuel and crude oil are lower in June. The global crude benchmark, Brent, fell lower than $5o per barrel and it ended lower than 4% compared to the previous month at the end of June. Meanwhile, the AirAsia shares ended at RM3.26 apiece, whilst 0.1% higher closing of the benchmark FTSE Bursa KLCI. Read more