AirAsia, AirAsia X Shares Up On Possible Route Recalibration
January 12, 2018 12:51 PM
KUALA LUMPUR, Jan 12 (Bernama) -- The shares of budget airline AirAsia and its long-haul affiliate, AirAsia X, were up in the morning session today.
It comes on the back of a series of tweets by AirAsia Bhd's Group Chief Executive, Tan Sri Tony Fernandes, hinting at a positive route recalibration involving both airlines.
At 11.03 am, AirAsia shares perked seven sen to RM3.84 with 3.82 million shares changing hands, while AirAsia X shares improved half-a-sen to 38.5 sen with 7.47 million shares transacted.
Fernandes, in his tweet, said AirAsia would be transferring routes that are over four hours to AirAsia X as AirAsia has matured and can use the capacity for the more profitable shorter haul routes.
He described the exchange of routes as a 'win win' for both airlines.
He also tweeted his prediction that this year would be good for AirAsia X with a further route reallocation and reduction in costs.
"Cleaning up the balance sheet in AirAsia X as we started the fourth quarter. 2018 looking good," he said.
He also said that AirAsia X is not interested in the long haul market, naming Berlin and London among others, as the airline felt the market was not ready, and would remain firmly focused on medium haul routes.