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Malaysia's AirAsia X shares hit 2-month low on weaker Q2 earnings

Published 20/08/2014, 07:42
Malaysia's AirAsia X shares hit 2-month low on weaker Q2 earnings
KLSE
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CAPI
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KUALA LUMPUR (Reuters) - Shares of Malaysia's AirAsia X Bhd dropped as much as 6.7 percent on Wednesday to their lowest since July 22, after the long-haul arm of Asia's biggest low cost carrier by passengers, AirAsia Bhd (KL:AIRA), reported weaker-than-expected second-quarter earnings.

The stock ended the morning session lower 4.88 percent at 78 sen, underperforming the broader index's (KLSE) 0.06 percent rise.

"First half of 2014 core net loss of 225 million ringgit already exceeded our previous full-year loss estimate due to weaker-than-expected yields," CIMB Research said in a report on Wednesday. "We more than double our loss forecasts for 2014-2015."

The research house also cut its target price for AirAsia X to 72 sen per share from 75 sen and downgraded the stock to "reduce" from "hold".

AirAsia X on Tuesday reported a net loss of 128.8 million ringgit for the April-June period, versus a net loss of 32.3 million ringgit a year ago, due to higher operating costs and weaker yields. Revenue, however, rose 36.7 percent year-on-year to 671.6 million ringgit. (http://bit.ly/1tgk1kH)

(Reporting By Yantoultra Ngui; Editing by Subhranshu Sahu)

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