Higher forex loss drags AirAsia X further into the red

PETALING JAYA: High foreign exchange (forex) loss on borrowings widened AirAsia X Bhd’s (AAX) net loss for the third quarter ended March 31 to RM288.19 million from RM210.85 million a year earlier.
The long-haul, low-cost carrier, whose revenue rose 13% to RM793.01 million, told Bursa Malaysia that it made a forex loss of RM241 million during the quarter compared with a forex loss of RM48.2 million in the corresponding period last year.
For the three months, AAX narrowed its operating loss to RM31 million from a RM133 million loss in the same period last year.
“The improvement was primarily driven by the increase of revenue and decrease in operating expenses. However, further improvement was hindered by the sharp depreciation of USD:RM translation,” it said.
On prospects, its CEO Benyamin Ismail said: “Currency translation remained a key concern moving forward and we have begun efforts to mitigate the increasing dollar denominated cost.”