Kuala Lumpur: AirAsia X Bhd announced its consolidated air operating certificates (AOCs) have carried about 18.9 million passengers in the first quarter of 2026 (1Q2026), up by nine per cent year-on-year (y-o-y) driven by a surge in domestic demand.
Its AOCs cover AirAsia Malaysia, AirAsia Thailand, AirAsia Indonesia, AirAsia Philippines, AirAsia Cambodia, and AirAsia X Malaysia.
“This performance indicates sustained demand across the network as passenger growth remains aligned with a 10 per cent y-o-y increase in capacity to 22.1 million seats. The consolidated AOCs have now recovered capacity almost to pre-pandemic levels, with a robust load factor of 85 per cent,” it said in a statement.
AirAsia X group chief executive officer Bo Lingam said 1Q 2026 validates the strength of its consolidated model with revenue passenger kilometre (RPK) growth of seven per cent, surpassing available seat kilometres (ASK) growth of six per cent.
“In response to external fuel pressures, we moved decisively in March to manage our margins through adjusted fares and fuel surcharges.
“Crucially, we have seen no significant signs of demand disruption. Our March load factor actually increased y-o-y as our guests prioritised the value and connectivity we provide during the Raya peak period,” he said.
Looking ahead, Lingam said the momentum has been carried into April, with forward bookings remaining firm across its core network.
“Our priority is to maximise the productivity of our active fleet while keeping our integrated network lean and adaptable. By prioritising high-yield corridors and maintaining disciplined cost management, we are prepared to navigate the uncertainties of the months ahead with resilience and agility,” he said.
On the international front, AirAsia X said the group’s focus on North Asia maintained solid momentum—its major routes to China from both Malaysia and Thailand performed well, with load factors for these sectors at 85 per cent for the quarter.
The airline said the consolidated AOCs carried 6.3 million passengers in March, a 19 per cent y-o-y increase which surpassed the 15 per cent y-o-y increase in capacity following the onset of heightened geopolitical tension and increasing jet fuel prices.
“This performance was driven by the festive period, where the group’s commitment to providing the best value to guests allowed it to capture a significant growth in regional travel.
“Notably, the load factor for March increased by two percentage points y-o-y to 84 per cent,” said AirAsia X.
Meanwhile, it said the group’s associate, AirAsia X Thailand (TAAX) carried 599,198 passengers during the quarter, representing a 20 per cent y-o-y increase following its strategic hub relocation to Don Mueang International Airport in late 2024.
The consolidated AOCs increased the operating fleet by one aircraft y-o-y to 203 aircraft, and closed the quarter with a fleet of 240 aircraft. TAAX’s fleet size stood at 11.
Meanwhile, AAX’s near-term outlook remains supported by sustained travel demand, despite new fuel surcharges introduced to manage the jet fuel price surge triggered by the West Asia regional conflict, which has led to higher airfares.
Public Investment Bank Bhd (PIVB) said AAX has also implemented various cost-cutting measures, such as capacity reduction, optimising fleet maintenance, and strategic network planning, to mitigate the impact of today’s historically high jet fuel prices.
“Depending on route economics and destination, fuel surcharges have increased by approximately 20 per cent, while overall airfares have climbed 30-40 per cent.
“With fuel representing 20-40 per cent of its operating expenses, these steps are essential to safeguard profit margins,” it said in a note.
Since the West Asia conflict began on Feb 28, crude oil prices have skyrocketed to as high as US$118 per barrel, which in turn led to a significant increase in jet fuel prices, from US$90 per barrel pre-conflict to the current US$200.
PIVB said AAX had cut approximately 10 per cent of its flight capacity, mainly by reducing frequency for lesser-performing routes and combining flights without affecting connectivity, a move driven by the conclusion of the Raya festive season and partly by cost management considerations.
“On network optimisation, AAX is reallocating capacity to stronger-performing routes. The airline is also using this opportunity to optimise fleet utilisation and accelerate the replacement of older aircraft with more fuel-efficient models,” it said.
Additionally, PIVB said AAX leverages its “fly-thru” connectivity via Kuala Lumpur and Bangkok to maximise passenger loads and efficiency.
“Finally, the company is banking on strengthening ASEAN currencies to act as a natural buffer against USD-denominated fuel expenses,” it added.
PIVB maintained an ‘outperform’ call on AAX but lowered the target price to RM1.85 from RM2.80.
