Long-haul budget carrier AirAsia X aims to be profitable by year-end, open to investment

Associated Press

Long-haul budget carrier AirAsia X says it expects to return to operational profit by the end of the year and is open to strategic foreign investment.

AirAsia X has suffered losses in the past two years and its share price has plunged to near record lows at around 0.20 ringgit (5 cents), far below its IPO price of 1.25 ringgit (33 cents).

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Acting Chief Executive Benyamin Ismail blamed losses on "irrational competition" by national carrier Malaysia Airlines, which had previously offered cheap fares to fill up seats. But the flag carrier has now cut capacity as part of an overhaul, which will benefit AirAsia X.

He said Wednesday AirAsia X has cut loss-making routes and plans new destinations such as to Sapporo in October and to Honolulu in November.