Go back to the notes slide. Hi, everyone. Welcome to AirAsia X fourth quarter full year results. Just an important note on the presentation slide. In the brochure that is released today, it talks about AirAsia X performance for the fourth quarter as a standalone airline. In this presentation that we just released, we have included disclosure of the short-haul performance, given that Capital A yesterday reported only for 11 months. I do hope that please do not do comparison on that results. Moving forward, we will report AirAsia X as an enlarged AirAsia X Group, where we consolidate six AOCs and also Thai AirAsia X as an associate. With me in the room, we have Group CEO, Bo Lingam, Deputy Group CEO, Farouk Kamal, CFO, Low Kar Chuan, and Lavinia, the Head of Group Finance. I will pass the presentation to Kar Chuan . Hey, Kar Chuan . Sorry, Farouk.
Thank you. We did better in the first round when you were not hearing. Anyways, we will make a presentation as follows in the slides, which is different from the results announcement for 2025. We will be talking about AirAsia X standalone, AirAsia short-haul, as well as the AirAsia Group, and we will talk about our 2026 strategy and outlook for the whole group. Next. As you are well aware, it is a new era for the group. On the aviation side, we just completed a transaction in January 2026, where all the seven AOCs now sit under one entity, which is the AirAsia X entity. In due course, as you know, we will be doing a rebranding subject to all the necessary approvals to be obtained. We have a new leadership lineup already announced.
We strengthened the board composition with the addition of independent non-executive director and with this going forward, we intend to continue what we have done well in the past, which is reap the synergies from this combined entity, continue to dominate ASEAN with the widest network, connecting into key Asia-PAC regions, as well as further strengthening our reach into new destinations such as the Bahrain and London destinations that we have highlighted, and with strengthened operational scale with the 250 aircraft under our stable. We will talk a bit about performance for the short-haul business. It has been a stellar 4Q 2025, where we have achieved an EBITDA of MYR 1.2 billion, 24% margin with an NOP of MYR 500 million, which is a 10% margin. A significant turnaround from previous quarters. This performance was driven by a strong 5% increase in passenger traffic, +7 million pax and a major rebound in Thailand's performance.
The Thai businesses released their results recently, which is also a significant turnaround in 4Q 2025, which is positive for us with Thai AirAsia and Thai AirAsia X recording their first quarter year-on-year revenue growth. Notably, TAA achieved significant turnaround profitability in 4Q 2025, while their associate, TAAX, delivered their strongest revenue quarter of the year. AirAsia Cambodia also has achieved profitability, which we are happy about, proving the power of brand and network connectivity. AirAsia Cambodia turned profitable in its first full year of operation since its launch 2024, with an NOP of 7.5% for 2025. For Philippines and Indonesia, we are also on track for recovery. We see positive signs in terms of EBITDA improvement. For Philippines, we also recently launched Cebu Hub, which we are working hard to connect into our existing network. AirAsia Indonesia also remains resilient, maintaining positive EBITDA momentum despite seasonal trends.
AirAsia X standalone also had a robust fare environment. Average fares rose 15% year-on-year, offsetting a strategic 6% capacity realignment to focus on higher longer-haul routes. NOP of MYR 54 million, which is a 5.9% margin, despite new route launches in the quarter, including Istanbul and Tashkent. Next. Unit cost discipline. CASK has gone down by 9% to $0.04 26, driven by favorable fuel prices, normalization of maintenance costs, and ongoing fleet and network optimization. Ancillary also continues to contribute robustly, about 19% of 2025 aviation revenue. Ancillary per pax marginally up to MYR 63 per pax and baggage remains the key anchor driver, contributing 61% of total ancillary revenue and we will talk more about our ancillary strategy in the subsequent slides. Go back.
From an enlarged AirAsia X perspective, NOP after non-operating aircraft is at MYR 290 million, which is a 4.8% margin, as well as the enlarged AirAsia X has met profitability internal targets, including MYR 4.6 billion revenue, 21% margin and exceeded the NOP margin at 5.9%. Next. We have talked a bit about this already. For 4Q, we achieved MYR 5 billion revenue, MYR 1.2 billion EBITDA, and MYR 500 million NOP for the charter business. Cost has gone down by 4.65. From a full year perspective, we have achieved the numbers that you can see there. About MYR 19 billion of revenue, roughly flat, while our EBITDA and NOP has increased at MYR 4.15 billion and MYR 1.2 billion respectively. We have spoken a bit about this already.
Various factors to this, including on the revenue side, has been Thailand rebound, and then on the cost side, there has been a lot of headwinds, including from the fuel costs, as well as other costs which we have normalized. Anything else to talk about here? Okay. We will go to AirAsia X standalone. For the 4Q, we achieved MYR 921 million revenue and MYR 124 million EBITDA, with a MYR 54 million NOP. This is going to be the last time that we will be releasing results for AirAsia X on a standalone basis. I think going forward, we will talk more from a group perspective. Next. This is the enlarged AirAsia X results. Again, we are very happy with the outcome. Achieved about MYR 6 billion of revenue in 4Q, with a MYR 1.35 billion EBITDA, together with a MYR 554 million NOP.
On an annualized perspective, we achieved a MYR 22 billion revenue, with a MYR 4.5 billion EBITDA and an NOP of MYR 1.3 billion. The EBITDA and NOP targets were met from an internal target perspective, and we were slightly off from a revenue perspective. Shareholders' equity is robust at MYR 767 million. With improved performance moving forward, we will continue to strengthen on the shareholders' equity. This one just shows an illustrative amount of revenue and profitability loss because of the capacity that was not in full capacity in 2025. This is just for illustrative purposes only. Had we had the full strength of our fleet in 2025, we would have achieved the numbers in black, which is a MYR 24 billion revenue, together with an NOP of about MYR 1.45 billion. This one was for illustrative purposes for your analysis.
As highlighted, operating costs decreased 9% year-on-year on an enlarged AirAsia Group basis, is driven primarily by three factors, which is lower fuel costs, lower other operating expenses, as well as maintenance and overhaul costs. Other cost drivers, staff increased 4%, user charges down 7%, and depreciation and amortization went up by 5%. Operating costs from an ex-fuel perspective was MYR 0.0268, down 7% year-on-year. We feel that the cost environment is expected to remain contained, supported by favorable fuel trends, stronger ASEAN currencies, and continued operational efficiencies that we will gain through the fleet and reactivation progress, as well as all the synergies and the centralization that we will undertake going forward as a single entity. Ancillary marginally up to MYR 4.3 billion. As highlighted, baggage fees is the main driver at 61%. Ancillary contribution remains healthy at 19% of overall AirAsia Group revenue.
The baggage contributes about MYR 2.6 billion of ancillary for the year. Seats revenue was also up 9%. Flight crew increased up by 5%. On ancillary per pax basis, it was marginally up by 0.2% at 63. Going forward, in terms of our strategy, we intend to strengthen the AirAsia MOVE contribution. As you are aware, the AirAsia MOVE contribution is on an ancillary per pax basis higher, 47% higher than other OTAs, suggesting higher upside for the group going forward. We will move to strategy and outlook. For 2026, our strategy is going to be volume or load active. We intend to increase ASK by 12% and increase the load factor above the 80%-85% target that we have. There are various strategies being employed by the commercial team for this. We can talk about that if you have questions later on.
We will continue to dominate routes through high frequency, dominate the market share in the key regions that we have. As you know, Malaysia and Thailand, 60% and 40%, respectively. We also plan some new routes focusing on connecting existing destinations. The focus continues to be from ASEAN, Asia perspective, and we will have also selective routes connecting outside of that. We will continue maximizing ancillary yields and take ups, and we can talk about that also in subsequent slides. One of the initiatives that is core to our DNA is the cost reduction through various initiatives such as the refinancing that we're doing and a few other factors we'll talk about next slides. In addition, getting all our aircraft back into the sky remains number one priority.
As highlighted and illustrated earlier, about 2.2 billion revenue loss, which we expect to gain back this year. We only have about 10 aircraft, nine aircraft from storage undergoing checks at the moment, which we'll target for completion on six in March and three in April 2026. One aircraft remains pending engine replacement, which we also aim to do in the near future. From a commercial and network strategy perspective, there's a lot of tailwinds in our favor. There's China's rebound, strong recovery expected in 2026, and Malaysia and Thailand is expected to ride this wave with new routes and added frequencies. The China-Japan situation also is a tailwind for the ASEAN region. From a currency perspective, the currencies continue to strengthen from a ringgit and Thai perspective, which is our two dominant countries.
Regional Asia expected to grow 5% in 2026 versus 3.3% global, underpinned by a lot of policy support. Visa-free travel will continue to happen within the region. From a Malaysia perspective, Visit Malaysia 2026 is ahead of us this year, which we expect to have inbound arrivals of about 15%. From a core market leadership perspective, we continue to focus on strengthening and dominating on the domestic side from a Malaysia and Thailand perspective. From Indonesia AirAsia perspective, we will continue to focus on international connectivity, which is our strong point. A lot of airports are going to reopen in that region, which will open up for international travel. That is also a positive for the AOC over there.
From a Philippines AirAsia perspective, we will improve for us via network rationalization as well as scale through the Cebu Hub, given the slot constraints that we have in Manila. We will have strategic frequencies to dominate proven corridors with high-frequency flying. We have the Bahrain-London strategy that we are undergoing at the moment, with strong positive initial bookings already. Our flight will start to fly in June 2026. We do have also interline strategies that we have set up for our Istanbul and Karachi hubs, which goes down to the bottom where we aim to increase the flight crew expansion with a target 10% flight crew contribution in 2026. I have already spoken about Bahrain and connectivity over there. This is the ancillary strategy I talked about. From a number four perspective, baggage enforcement is going to be a strategy, as highlighted earlier.
Baggage contributes about 61% of ancillary, so we will strengthen baggage enforcement in the key hubs around our region. In addition to that, we will continue to innovate new products to deliver more value, personalization through AI adoption. Very interesting new developments over there, which we can talk about, as well as increasing the AirAsia MOVE contribution to our sales. This one just talks a bit about fleet rollout. We expect the fleet to remain at about 253, combining short-haul business and long-haul. Going forward, in the coming years, you can see it growing up to 350 aircraft in 2030. We have about eight A320 deliveries expected this year, but we will replenish them through new deliveries and third-party leases that we have lined up. So for 2026, we expect to close at about 253. We have four new A321LRs, which we will deploy into AirAsia X.
There will be a few third-party leases also that we plan to sign up on. In addition, as you are well aware, we also have the 150 OEM order book, which we plan to close in the near term. These are the cost reduction initiatives I highlighted. So various initiatives, including reactivating all the aircraft by this quarter or by April. We want to replace all the old aircraft with more fuel-efficient aircraft with the A321LRs coming in, as well as the regional aircraft that we plan to put an order in. We are increasing predictive maintenance capabilities through AI adoption and through our ADE partnership. In terms of financial optimization, refinancing corporate loans remains key to us through bank financing and public debt issuance. We could drive 3% interest cost savings. We also are negotiating hard on lowering the differential on the fuel cost.
Fuel cost has already come down, but we want to bring it down further through the defactor savings. As I highlighted, we want to reduce OTA commissions by moving back through the AirAsia MOVE ramp-up. In terms of strategic and regulatory, we renegotiate with all our partners, the OEM contracts, airport incentives, ground handling. We also work hard with the ministries to increase better air traffic management. There's a lot of interesting things happening within the group, and we're quite optimistic for the year. This one talks about our internal targets for 2026. Based on all the assumptions that you can see in front of you, we have a target revenue of about MYR 25 billion and an EBITDA of MYR 5 billion, and an NOP margin of 5%. Obviously, it's a range, just like we did last year, but we just wanted to give some form of anchor, basically, right? Some form of anchor point that we can guide you from our internal targets. That's it.
Thank you, Farouk. I'll open it to questions. You can either type your questions in the chat, or you can raise your hand and unmute yourself. I'll start from the chat. This is from Kong . Hi, Farouk, Bo, and AirAsia Aviation team. Glad to attend the first AirAsia Aviation Group meeting. First and foremost, congratulations. Literally, the world's best low-cost airline is now officially out of PN17. He has about, let me see, maybe five questions. Fleet status. May I confirm that Q1, is there only one aircraft still in storage? If so, would it be fair to use Q1 2026 as a more normalized base that better reflects the aviation group's underlying performance, assuming minimal disruption from grounded aircraft? At the end of Q1.
In March, you will have six aircraft, so you have to discount that two months. Q2, I think, which is April, you have mostly all your aircraft operational.
Next question is on OEM compensation. Previously, you mentioned potential chargebacks due to engine delivery delays. Could you provide any updates on this?
Negotiations are still going on. We are very positive of getting compensation. Most probably the next one month or 90 days, next 45 days, we should be able to conclude it.
When do you expect full fleet restoration?
Full fleet restoration, I think only one aircraft in April. I am just waiting for the engine to go through the test cells and so forth. Hopefully, by the second week of April, we can get the last aircraft out.
I'll open up to the floor if you have any questions. If not, I'll move on to
I'll say something about Bahrain.
Next question, still from Kong, on the Bahrain initiative. With the launch of KL-Bahrain-London service and the broader Bahrain strategy as a global hub, could you provide more color on the expected cost implications for the group, both in terms of operating expenses and capital investment?
At this point of time, we are just flying KL- Bahrain-London. It's just utilizing the fifth freedom. We did the same from Bangkok to Bahrain and into Europe. At this point of time, we are very focused on just utilizing the fifth freedom so that the hub is not in play now.
Secondly, how do you expect this to impact the group's bottom line, economically and financially? Are there specific cost assumptions or yield expectation we should be aware of as you scale the Bahrain operations?
I honestly don't think there's any more investment. I think it's only positive because we get good fares and so forth, so there's no downside to it.
Does the management have a timeframe or milestone when you expect the Bahrain hub to contribute meaningfully to the profitability of?
No, it's not a hub. It's just a flight going on fifth freedom. There is no aircraft that's going to be based now at this point of time.
Kong, to answer your question, for now, just a route using the fifth freedom rights.
Just like what we do out from Taipei to Fukuoka. It is the same concept.
We do not see a way we can do that.
Okay. Any questions from the call?
Hey, greeting. This is Ben here. Thanks for the presentation. Just want a quick check on your fuel hedging policy. I think one of the risk events on the horizon would be if there's any tensions in the Middle East, any flare up, right? I think it's the Iran situation. Just wondering how you're thinking around this kind of risk event, whether there's any risk mitigation here. Because I think the fuel costs that you've been enjoying in 2025, about 101, there's probably risk to that. Please give some color on your risk management strategy here.
Yeah. I think just like you know about all the geopolitics that happens, there's also the tariff element in there, right? It's very hard for airlines and businesses at the moment to undertake any carefully planned hedging strategy. Just like something can happen, but something can also not happen, right? In the meantime, we feel that the levels here are still very good. Not just from a fuel perspective, but from a FX perspective. We feel that absent all this noise, fuel will continue to be downtrending. We do have a hedging strategy that we have in place, which we've highlighted in previous quarters also. But it's not going to be driven by all this geopolitical noise that's happening, because just like something happens, something can also not happen.
All right. Understood. Just to summarize here, you're currently not hedging for this event or this potential event then?
No. Yeah.
Okay. My second question is just on the fares. Just wondering, what is the outlook on fare pricing so far this year? Should we expect to see your yields come down as you start to deploy capacity? Can you give us a sense of the direction here?
No, I don't think so. I think fares are going to be stable as what it is. I think we are a lot more on load. I don't see any downside in this line of time. We'll be able to hold the fare.
Okay. Thanks. Thanks for the color.
Thanks, Ben. Next question, from Daniel, from Hong Leong. Daniel, can you unmute yourself?
Hi. Good afternoon. Can you guys hear me?
Yes.
All right. Okay. First thing, I just want to clarify, the NOP you mentioned here, actually, is it at the EBIT level or is it at the PBT level without the derivative, without the FX?
Net operating here excludes the non-operating aircraft, FX, shares of associate, et cetera. It follows our normal how we report in the P&L, the face of the P&L.
Forex and, oh, derivative. Okay.
We also included the full P&L for you in the appendix for the short-haul and the enlarge in the appendix. You can see which line we are referring to.
I see. Okay. Just want to check one point. Can you go back to the slide on the short-haul?
Yep.
Short-haul. I think in short-haul here, it shows here that short-haul managed to get a reserve to achieve NOP of MYR 1.3 billion, correct?
Yes. Oh, okay, sorry. Yeah. Correct.
Is it? Sorry. This is enlarge AirAsia X, sorry. 1.3-
No. Short-haul.
Short-haul.
Yeah, slide 10.
Oh, slide 10.
Enlarge is one point .
1.3. Revenue is about MYR 22 billion, correct?
Yeah.
Now-
Billion, yeah.
This, again, you guys have a lot of uncertainties due to movement and so on, the tighter operation, all this. I just don't really understand, your target for this year seems to be for this FY 2026, you have a higher revenue target, yes, MYR 25 billion, but your NOP target seems to be even lower than last year.
That is just a point, Daniel. It is supposed to be a range, but it is just that this year we are just anchoring the guidance towards a point. If you will, you can think of it as a range within that point, basically.
What kind of range are we looking at? What is the upside from this 1.25 or what is the-
We cannot guide up more than that. We are just guiding towards those anchor points.
Okay. From your anchor point, in looking at your assumptions here, you are looking at all these percentage numbers, ASK, all this. From this group engine anchor point, or from initial assumptions, what are the things that we can see to provide further upside from this anchor point? The fare or we are looking at operational aircraft, or we can look at ASK or we look at EU perspective, which may potentially give the upside from your target.
I think the upside, there is ancillary, there is also your cost. I think, as a cost, there is a lot of costs that we actually making now from airport, from our OEMs guys, because now we are out of PN17. We are renegotiating all our contracts. There is a lot of upside there. In the next few quarters, you will see all those savings coming in.
In addition, obviously, this guidance is based on certain assumptions. But even now, we can see the, for example, the USD- MYR continues to strengthen against the assumptions that we have given. That is one tailwind, and it is predominantly going to be on the cost side, basically, where we will surprise on the upside.
We are looking at the cost side, the cost per ASK to be lower than what you are looking at now?
If there is any tailwinds to the internal guidance.
I see. Okay. From all your operations, you have Malaysia operations, Thailand operations, Philippine operations, Indonesia operations, and Cambodia operations. For this 2026, we will safely assume that Malaysia will be the strongest profit-making entity. How about Thailand, Indonesia, Philippines, and Cambodia? How should we look into for this market?
I think Thailand will be pretty good. As you know, for the Chinese year, Thailand receives a lot of tourists. I do not see any downside to it until end of the year. Of course, you have something happening, then it is a different story. The same goes for Philippines, Indonesia. As you see, Cambodia, we are being very cautious. Once I get all my approvals for China and India, then I will add planes there. But apart from that, I think we are looking at all positive growth in all the countries.
India and China. Philippines and Indonesia, do you expect to turn around this year?
Yep. If you look at it earlier in the slide, we are pretty well recovering. It is just that we need aircraft there. Once the aircraft comes in and then as you are aware from the last, we started up Cebu Hub. So it is a new hub, and we are growing that hub. So with Manila being congested, we are opening up a new hub in Cebu. And that hub is doing pretty okay. I mean, just started, so hopefully in the next few quarters then, when we get all our aircraft, it will be in full swing.
For the Philippines, likely to stay in the red for the next two, three quarters before it can potentially recover in the fourth quarter?
Yep.
And same goes to Indonesia? Or different?
Yeah.
It's not-
It's not in the red, Daniel.
Indonesia no more in the red.
Indonesia and Philippines.
Indonesia was possibly in the third Q.
Third Q.
But overall, for the full year story-
Yeah, full year.
Yeah, but we are EBITDA positive for both Indonesia and-
Philippines
So yeah.
It will get better in the next two quarters.
All right. Okay. We know that Malaysia and Thailand, you do not expect further restructuring for these two subsidies. How about Philippines, Indonesia? Do you see further restructuring needed for these two subsidies? Or if there is further restructuring, what kind of restructuring is there? Will they involve in further capital injection, all this?
Yes. There is for Indonesia and Philippines, which we are working on now.
Capital injection, is it?
Pardon?
Is it capital injections or?
Yeah.
How much are we looking at?
Just to clarify, it is not capital injection from the division.
Yeah.
We are looking at more of external investors coming in to actually, if you look at doing our operation certain. It is more of a strategic partner.
External strategic partner to come in.
Correct. Another strategic partner or a passive investor who can contribute to the growth of these two AOCs. That is what we are looking at.
No need for the holding co on this to actually raise money to come into these two entities.
No. We have really restructured both AOCs. All the unprofitable routes have been cut, and with that out, we are positive level again. So now it is the next level for us to turn it into like positive, and at a more sustainable level. That is what we are looking at.
How soon will all these restructurings complete?
We are not sure yet because we have been exploring since last year. I think the key thing is we have to find a suitable partner who can work together with us smoothly. Because in the past experience has not been good. We are very careful when we select this partner. Definitely it is ongoing. I do not think we are in a rush, but we have to make sure that we select the right partner.
I see. Okay. In the fourth quarter, recent fourth quarter, we mean the report just before. Is there any exceptional items we are looking at? For example, higher provisions for maintenance, engines refinery, all this. Because we have not seen a number yet, we are asking you now. Is there anything that has suddenly bumped up in the fourth quarter?
Not that I-
Compared to the previous quarters or this?
Fourth quarter, no.
Other than FX, if you consider that exceptional.
Yeah.
FX. On your costing side, nothing exceptional in terms of a higher maintenance or higher refinery charges or reversal, all this.
Only one is those non-operating aircraft costs that we incurred, that we have really showed the slides.
Only for the non-operating aircraft only?
Yeah, correct.
What is this relating to, provisions for?
Not provisions. These are those aircraft leasing costs that we are paying while these aircraft are not operating for aircraft on ground. They are not generating revenue.
Then this amount actually enlarged in the fourth quarter?
This amount, we already factored that in fully. We have been paying for it, and the disclosure has always been consistent. If you realize that, we disclose what is our not operating aircraft costs.
Oh, okay. Sorry. I did not get what you mean. In the fourth quarter, compared for this now operating aircraft, in the fourth quarter, the numbers are slightly higher compared to the previous first, second, third quarter.
It's about the same.
About the same.
About the same.
I see. About the same. But all this time, operating aircraft is in Malaysia, right? I mean, it's not in other Malaysian.
There are a few in Indonesia, about three in Indonesia and two in Philippines.
Two Indonesia, two in Philippines.
Three Indonesia, two Philippines.
The rest are four in Malaysia.
Yeah.
Yep.
Okay. I think that's all from me for now. Maybe we let others to proceed first. Thank you.
Okay, thanks. Moshil, we'd like you to ask your a questions.
Okay. Hi, guys. Can you hear me?
Yes.
Yes.
Okay, wonderful. I'm going to jump around between slides 23, 24 and 15. I know it's a very simple question, but it's very important to me. Slide 24, when you say pro forma operating statistics, I want to refer to the ASK of 113.378 million. I just want to understand how you get that number. Is it 100% for the entire seven airlines? Or is it-
100% for the six airlines.
Thai AirAsia X is excluded from this one?
Yes, correct.
Okay, wonderful. That clears things up. When you say there is going to be a 12% ASK target on slide 15, it is basically 12% from this 113 number?
128. At least 128 billion.
128. Okay. 128 billion ASK. Okay, wonderful. Then, load factor target of 85%. You will not give any guidance with regards to yields or unit revenue or anything of that sort for now?
No, but you can calculate by the revenue number that we are given of MYR 25 billion.
Yes, I can work backwards from there.
The rest will be flattish.
Okay. I can have a gauge on the average flight length, so that will give a good idea. The other thing I need to ask is, with regards to your maintenance, right? Because I'm taking the view that in the past, your maintenance intensity, it's a bit high because of the existing aircraft that you have. You have to run them hard. So they're probably doing more hours, more landings than historical normal. Due to that, your maintenance expenditure would probably be higher than historical normal. Now, going to 2026, can we expect the maintenance per aircraft per year would be heading lower? Is this a fair assumption?
Yes, it's a fair assumption.
Okay. Thanks, Bo. Roughly how much can I expect?
You know.
Because I'm trying to compare relative to your 2019 norms. You are 20% higher than 2019 norms, in terms of the maintenance intensity.
Because at that time, the aircraft go all in storage.
Reactivation cost.
All the reactivation costs.
Seems like.
Yeah, that's why. I just don't know how to-
Also, remember, cost of spares all gone up. So that's why, as I said earlier, I'm going to go back now. We are out of PH17, negotiate hard with all the OEMs.
Mm. Yeah. If you saw Rolls-Royce release their results today, you will be saying four letter words. You deserve to demand for lower costs from all these OEMs. They are making too much money.
Yeah.
Okay.
Everyone is the same way.
Just have a look at Rolls-Royce results. They just released two hours ago. You will be saying four letter words, I am sure. Okay. I know.
Even after pay compensation.
Yeah. Okay, so I have to make some guesswork on this maintenance. I know it is too high. I just do not know how much lower it will normalize to. I am out of touch of the market already, so I will need help on this one.
Come back to the office more soon.
You come and visit and go to the apron. Get yourself familiarized again.
Okay. Marketing expense. Can you just give me some idea how much you think the budget is going to be?
Less than 1%.
Less than 1%.
Okay.
It's much lower than pre-COVID. Pre-COVID was 1.5. Probably about 0.9, 0.8 now.
Okay. Of revenue, right?
Revenue, yeah.
All right. Then aircraft. Then, okay. Then interest, I've met with Faruk. He's given me some guidance. Okay, that's all. Thank you so much. I'm going to fine-tune my model. Thank you.
Thanks .
There is a question on the chat. Yuchen has asked on the sensitivity to the FX movement. If you just go to slide on the external targets, we have actually provided the sensitivity. MYR 0.01 Is equivalent. 10 cent change is about MYR 383 million impact to the NOP for a full year basis. Underneath, we have also provided a sensitivity to jet fuel, which is $1 change is about MYR 81 million. Passing to Jia Wei. You have a question?
Yeah. This is Kai Siang. Sorry, I am using someone else's phone.
Yeah.
Just one question regarding your guidance, or your target, especially on the NOP margin side. This NOP margin target of 5%, is it included all the non-operating aircraft? Meaning as in clean NOP.
It excludes the non-operating aircraft.
It excludes the non-operating aircraft, which is what, assuming there will still be some
There will be some. We still have some, the nine aircraft until April.
Just to clarify, because your NOP, there is two line of NOP. One is including non-NOP and including non-operating aircraft, which is about 600, and on a large basis is about 500 over million, right? Including the non-operating aircraft. If you exclude the non-operating aircraft, it is about 1.3 billion NOP.
Yeah.
So you are looking at the 5% target, are you looking at including the non-operating aircraft?
Yeah, excludes the non-operating aircraft.
Exclude.
Exclude. As in it will be It's okay. I'll come back to you on this later. Okay. Thank you.
As you highlighted, right? This year is expected to get to full operations already. The non-ops will-
is small
will go away by April. If everything goes to plan.
Okay. Any more questions guys, yeah?
All good. Yeah.
Thanks. Pass to Matthew.
Yeah, hi. Congratulations on your results. Just a follow-up on the NOP margin on this internal target. So this is also before minority interest, is it?
Yeah.
Yeah.
Could you give us some color on after minority interest as well?
Oh, we do not have that number.
It is a bit hard to predict that, right? It is hard actually to do that.
I see. Okay. I see you guys are expecting to do 85% load factor. Given that we are already two months in the first quarter, and that both Hari Raya Aidilfitri and CNY is also in the first quarter this year, maybe could you give us some color on the forward booking numbers on both short and long-haul? I think at the moment, long-haul is at 80% with the load factor and 84% for short-haul. Should we expect slightly higher going ahead?
What do you mean? For the Hari Raya Aidilfitri season, is it? You are asking for Hari Raya Aidilfitri season or for rest of the year?
For first quarter only.
First quarter. Yeah, it's very healthy. I think it will surpass, if you just ask me for first quarter, it will be more than 85.
This is on a blended basis for both short and long?
Yes.
Yes.
Yes.
I see. All right. Yeah, thanks.
Next question, Daniel.
Yeah, hi. Can I check, I noticed that under the short-haul, is this other operating cost which increased to MYR 200 + million? Can I check? Because previous quarter is MYR 100 + million, but now it's come MYR 200 + million. May I know what is this contribution to the jump?
Other OpEx MYR 178 [inaudible] .
Can you repeat the question again, Daniel?
The other operating expenses under for the short-haul in the fourth quarter.
Oh, why there's a jump?
Yeah. It jumped by MYR 150 million.
It is in the quarter. In the quarter, 178 to 289. It is quarter-to-quarter. No, that's year-on-year.
I mean quarter-on-quarter increase.
Wow. Qo Q. Compare the second Q also, it went up.
We'll just get back to Daniel.
Yeah, we will get back to you.
We will look to you. Let me just look at the number and get back to you.
All right. Sure. Maintenance. Okay. I also noticed that your maintenance came down, but your user charges. Your maintenance actually went up, but your user charges came down slightly. I am just trying to check, this maintenance, is it going to be a going forward level of maintenance base, or we are looking at a lower maintenance going forward?
Moving forward, it will be lower because most of it we have already completed all this, what do you call, reactivation of the aircraft.
I see. How about the user charges and other expenses?
User charges, there is a lot of in there, you see?
Yeah.
That is why I say we are negotiating with airports, and also all our old flight charges and everything. We are re-looking at it and see how we can renegotiate with the authorities.
I see. Okay, on your tax, I noticed there are deferred tax expenses already in these few quarters, I think. Can I check any guidance on this tax thingy, and then how should we look at the tax?
The tax, I think it's mainly from, I think there's some deferred tax and the guidance operate tax because suddenly we make some profit.
Okay. I know the deferred tax for AirAsia is MYR 15 million for this quarter. It started this quarter, but previous quarters doesn't have this deferred tax. Just trying to understand how should we look at the tax then? Is it going to continue to be in there?
It is.
I mean,
Yeah.
This is the reversals of our deferred tax assets because AirAsia X is making profit. It is the recognition of the future profits have crystallized, so you have to release your deferred tax asset.
Yeah.
So this will continue to be expense out as AirAsia X continue to make profit or AirAsia Group?
Yes.
This is only subject to AirAsia X or does it also happen to the Malaysia AirAsia company?
It will be both.
Oh.
These Malaysian operations, it is a Malaysian tax.
Because I do not think I saw this in a Malaysia AirAsia numbers. That is all from me. Thank you.
Related to tax, Moshil did ask, what should I assume the tax rate for 2026 and 2027? What tax rate to assume for forecasting for 2026 and 2027?
We will get back to you.
Yeah, we will get back to you on that.
Question from Tom is on OTA. I see ancillary revenue per passenger on AirAsia MOVE is 37% higher than OTAs. What percentage of bookings are already on AirAsia MOVE? What is the target percentage? How much commission savings do you get versus Expedia or Booking.com can we expect?
If you look at the last quarter, we have moved towards MOVE. That is our research, so I don't need to pay all those OTA fees. I think moving forward, I think for this year, we're looking at least at 50%-55% bookings coming through MOVE.
Okay. Ben, you have a question?
Hi. Thanks. I just want to clarify. In your sensitivity that you shared on the currency, does that include just the foreign exchange gain and losses or is that a purely operational number?
Purely operational and also from the leases, realized the leases. It doesn't include unrealized FX gain and losses.
Mm-hmm. Okay, that's helpful. Thank you.
Any other questions from the floor or from the call? Jia Wei or Kai Siang .
Yeah, your target 15% ASK, 13% ASK growth, actually, how much is it contributed by the reactivation of the non-operating aircraft and how much is from the additional aircraft? Or mostly actually from the non-operating aircraft?
I know they're half-half because our operational fleet is growing from 209 to 238, whereas our total fleet is remaining flat. It's basically largely just the increase from operational aircraft.
Okay.
Even if you look at the aircraft that we're getting, we are replacing existing fleet that are retiring this year. Net aircraft is flat. Okay. Any last questions before I pass it to-
Can I just check? On the leasing charges, do you see that the average increase, because you have new aircraft orders coming in, do you see that actually the leases per aircraft actually increasing? I mean, cost of leasing the aircraft increasing compared to its numbers?
A bit blend because, say for example, the four A321LR that's on a higher aircraft leasing basis. Having said that, you will save on fuel because it's 15% more fuel efficient. The other aircraft that we're getting in, which roughly should be about seven third-party aircraft, the leases will be lower or close to our average because these are older aircraft.
I see. Okay. That is all from me. Thank you.
We asked for A321LR's fleet. I cannot see.
If there is no other questions, I will pass it to Bo for some closing remarks.
We are glad to be out of the year PN17, and I am very, very bullish and optimistic on year 2026. I think this is a year where we will basically focus on Southeast Asia, increase market share, frequency, and of course, on being a network airline. I think all of the team are working very hard. Hopefully, everything goes well this year. Hopefully, fuel remains Forex good, and we get all your support. Thank you very much. Anything else?
No. Thank you everyone for dialing in. If you have any questions, please feel free to reach out to me and the team. [ inaudible] T hank you so much.
Thank you.