AirAsia Group achieves 79% load factor

KUALA LUMPUR : AirAsia Group recorded a load factor of 79% during the second quarter of the year, while passengers carried increased by 13% year-on-year to 11.3 million.
During the quarter under review, the group increased capacity by 15%. It took delivery of an additional nine aircraft (45 additional aircraft y-o-y), bringing fleet size to 166 at the end of 1Q14 (167 including AirAsia India).
Malaysia AirAsia (MAA maintained a strong load factor of 80% in 2Q14. Growth in passengers carried was flat with just a 1% y-o-y increase to 5.6 million. It was inline with a 1% increase in capacity.
During the first half of the year, MAA underwent route rationalisation whereby each route was reassessed to ensure optimal profitability and use focusing on routes with high passenger demand.
This is also on the back of a more rational market as competitors too are scaling down on capacity.
MAA added eight aircraft into its fleet this quarter, while y-o-y it added 14 aircraft.
This brings MAA’s total fleet to 80 at the end of 2Q14. MAA introduced four new routes: Kuala Lumpur – Kalibo; Johor Bahru – Tawau; Kota Bharu – Singapore; and Kuala Terengganu – Singapore. Frequencies were also increased on five routes: Kuala Lumpur – Kota Bharu, Kochi, Hat Yai, Siem Reap, and Lombok.
MAA had terminated its Miri – Kuala Terengganu route and had scaled down significant number of frequencies on three existing routes: Kuala Lumpur – Sandakan and Singapore; and Johor Bahru – Miri.
Thai AirAsia (“TAA”) recorded a load factor of 78% this quarter, down 4% mainly due to the political instability that led to a slowdown in inbound tourists.
Passengers carried increased 16% y-o-y to 2.8 million with 23% increase in capacity y-o-y. There was no aircraft addition into TAA’s fleet this quarter, but y-o-y it took in an additional eight aircraft. At the end of the reporting period, TAA has a fleet of 37 aircraft. A new route was introduced: Phuket – Kuala Lumpur; while frequencies were increased on three routes: Bangkok – Surat Thani, Phuket and Khon Kaen.
Indonesia AirAsia (“IAA”) too recorded a load factor of 78%, down just 1% y-o-y. Passengers carried grew by 3% y-o-y to 2 million, while capacity increased by 5% y-o-y. No aircraft was added in the quarter. At the end of the quarter under review, IAA has a fleet of 30 aircraft. IAA increased its frequencies on three existing routes this quarter: Surabaya – Jakarta; Bandung – Surabaya and Kuala Lumpur.
Philippines’AirAsia (“PAA”) reported a load factor of 77%, an increase of 3% from 74% recorded during the same period last year. Passengers carried saw a high growth of 560% y-o-y to 0.92 million. Growth in capacity was also high at 534%. This quarter, PAA took in a new aircraft whilst y-o-y PAA received 17 additional aircraft (a significant increase due to the acquisition of Zest Air). PAA’s fleet now stands at 19 aircraft. Frequencies were added on four existing routes: Manila – Incheon, Tacloban, Tagbilaran, and Puerto Princesa.

Sourced: ttrweekly