AirAsia X cargo and charter revenue expected to grow, boosted by passenger flight revenue

KUALA LUMPUR (22 Feb): AirAsia X Bhd’s (AAX) cargo and charter flight revenue is expected to continue to grow as more aircraft return to service, boosted by passenger flight revenue once international markets reopened.

Public Investment Bank said AAX’s latest announcement on the fixed issue price for its one-for-one rights issue and special issue at 28 sen per share also allows the group to boost its discounted operations much further.

“We still view this development positively as it will also mean less dilution for existing shareholders as the previous plan was a nine-for-five exercise at an indicative price of 40 sen per share,” he said in a statement. a note on Tuesday (February 22).

The budget long-haul airline on Monday priced its rights issue at 28 sen to raise up to RM116 million for its working capital needs.

The brokerage firm said AAX management was also in discussions with lessors to lease four additional planes for the preparation of scheduled passenger flights.

As such, it kept the profit forecast unchanged, with the lower amount raised not expected to materially affect its cargo-passenger hybrid business model.

“Our price target is also unchanged at RM1.30 and reiterates our ‘outperformance’ call on AAX,” he added.

As of 11:25 a.m. Monday, February 22, AAX shares fell three sen to 57 sen, with 519,600 shares changing hands.

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Sallie R. Loera