KINIBIZ Yield issues have affected another local carrier, with AirAsia X (AAX) reporting larger than expected losses in its fourth quarter for financial year (4Q13) on the back of increased yield pressure from its Australian, Jeddah and Maldives routes.

AirAsia X yield movement 260214According to Alliance Research, after adjusting for unrealised forex, deferred tax and listing costs, the airline recorded a core net loss of RM48.6 million in 4Q13 (-282.8 percent year-on-year or y-o-y and -378.1 percent quarter-on- quarter or q-o-q).

This then dragged down AAX’s core net profit to RM21.6 million, said the research house adding that this was below both its and consensus expectations.

It also highlighted that much of its yield compression came in the 4Q due to significant capacity addition by both AAX and Malaysia Airlines (MAS) in key Australian routes, poor performance of the Maldives route and from the Jeddah route (which came as a result of restrictions on Malaysian Muslim pilgrims travelling to Mecca).

Mohsin Aziz of Maybank IB Research concurred, saying that the key takeaway from the results was that AAX’s yield sunk by 13.6 percent y-o-y in the 4Q13, the most severe decline since its inception.

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