AirAsia X falls on the back of Q3 losses
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AirAsia’s share price slid in yesterday’s early morning trade as the airline recorded widening losses. At 9.45am, the counter was down 1.5 sen or 6.25% to 22.5 sen a share on turnover of 2.8 million shares. An increase in average fuel price and a RM138.2mil impairment made on an amount due from a joint venture resulting in AirAsia X’s net losses jumping almost five times to RM197.47mil from RM43.3mil in the year-ago quarter.
The carrier said the average fuel price in 3Q18 had increased to US$91 per barrel compared with US$65 in 3Q17.
Meanwhile, the impairment made in the third quarter was related to a lease rental and maintenance reserve due from a JV through a third-party leasing intermediary.
Questions & Answers
Q.What caused AirAsia X's net losses to increase so significantly in the third quarter?
What caused AirAsia X's net losses to increase so significantly in the third quarter?
The company's net losses jumped due to an increase in average fuel prices and a substantial RM138.2mil impairment made on an amount owed by a joint venture.
Q.What was the average fuel price for AirAsia X in the third quarter of 2018?
What was the average fuel price for AirAsia X in the third quarter of 2018?
In the third quarter of 2018, AirAsia X reported an average fuel price of US$91 per barrel. This is an increase compared to the US$65 per barrel seen in the same quarter of the previous year.
Q.What was the nature of the impairment made by AirAsia X in the third quarter?
What was the nature of the impairment made by AirAsia X in the third quarter?
The impairment was related to a lease rental and maintenance reserve. This amount was due from a joint venture, processed through a third-party leasing intermediary.