Malaysian low-cost carrier reports strong performance, opens new long-haul route to Australia

Reported by You T-Ru / Taipei

Low-cost airlines have become the top travel choice for many people in recent years and a hot topic among young consumers. A Malaysian low-cost airline released its financial report showing that despite the industry's overall losses and sluggish revenues, its Q2 revenue in 2013 increased by 21% compared to the same period last year; in the first half of the year, revenue reached nearly NT$9.3 billion, up about 9% from the same period last year.


▲ AirAsia. (Photo / Provided by AirAsia)

AirAsia X achieved significant growth in the first half of this year, mainly thanks to an increase in the number of seats and passenger load, while ancillary revenue was also not to be underestimated. Passengers are increasingly accepting newly introduced services such as Fly-thru connecting baggage transfers, with a 31.7% rise in the second quarter of 2013 compared to the same period last year, reaching approximately NT$900 million, equivalent to 20.1% of total revenue, helping to solidify its leading position in the airline industry. In addition, AirAsia X restructured its routes, discontinuing services to Europe and some Indian destinations in the first half of 2012, reducing the total number of routes from 17 to 14. It then shifted its focus to core markets in Northeast Asia and Australia, increasing the frequency of flights on popular routes.

Azran Osman-Rani, CEO of AirAsia X, commented on the first-half results, saying, “After reconfiguring our routes in the first half of 2012, our current strategy is to focus our efforts on the main core market — the Asia-Pacific region.” Azran Osman-Rani added that AirAsia will take delivery of two more aircraft by the end of this year, significantly expanding its fleet to 18 planes. In October this year, it will also launch its 16th destination, “Adelaide, Australia,” to celebrate the doubling of flights. From now until September 1, the AirAsia website is offering special promotional fares for two people traveling from Taipei to Sydney, Melbourne, and Perth in Australia, with one-way fares including taxes starting from as low as NT$9,790.