Losses Widen at Long-Haul Budget Carrier AirAsia X

KUALA LUMPUR (DPA) — Long-haul budget carrier AirAsia X suffered an after-tax loss of 519.3 million ringgit (143.45 million dollars) in 2014 mainly due to high operating costs and currency depreciation, the company said late Tuesday.

The loss was nearly six times higher than the 88.3-million-ringgit loss in 2013 suffered by the affiliate of Malaysia's AirAsia.

The company's total revenue in 2014 rose by 27.3 per cent to 2.93 billion ringgit, from 2.30 billion ringgit in the previous year, but operating expenses increased by 44.8 per cent to 3.32 billion ringgit.

The company added that due to the weakening of the ringgit against the US dollar, it had recorded millions in foreign exchange losses on borrowings and fuel hedging contracts.

"Our company is faced with challenges in a difficult industry-wide operating environment," it said.

 
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