Evening. Welcome to the first quarter 2023 numbers. Thank you very much for your time. I will just go through the deck and then, as Jane said, we will go through the Q&A after that. More than happy to answer any more questions after that. Let us kick off. Net profit for the first Q23 stands at MYR 328 million, which is more than 7x of MYR 43.3 million in 2019, pre-COVID, despite only having nine operational aircraft. Bearing one-off reversal of provisions, core net profit stands at about MYR 62 million at first quarter 2023. That shows that operations is fairly sound. Important thing is the turnaround of the shareholders equity to MYR 40.8 million from negative equities in 2020. First quarter 2023 revenue increased 91% to MYR 548 million, showing a 40% recovery from 2019 period. Average base fare remains solid at MYR 785, 53% upside compared to the same period in 2019.
Ancillary revenue continued to perform. It surged to MYR 123.3 million or RPP of MYR 244 per pax, an over 40% hike from first quarter 2019 of MYR 172 per pax, driven by bigger take-ups in baggage, in-flight meals and of course, Fly-Thru connections. The key element again is the cost containment process and reduction that we have done throughout the one year. Costs have reduced over 50% against 2019 levels, putting the company probably in the most sound and best cost structure to ensure that we continue to sustain profitability. Fleet growth. We are still in the fleet reactivation of bringing planes back from the sleep. We got three more aircraft that has to go into MRO. Of course, we are taking additional aircraft as we speak, on a yearly basis and also in negotiation with Airbus to accelerate some of the order books forward.
Due to good numbers, team has also secured some additional financing through a placement, around MYR 50 million, but more to shore up our share cap, and also for cash balance. Of course, the key thing is the interest that we got from local investors into this aviation business. It has been a while, but yes, the feedback has been good. Of course, associate Thai AirAsia X posted MYR 91.9 million of net profit on the back of a hike of revenue of MYR 356 million as the number of passengers increased in line with ramp-up operations in Bangkok. Just going through each line of the P&L. Again, revenue recovered 47% in the first quarter, MYR 548 million, really driven by strong fare environment, despite the number of low aircraft.
Scheduled flights revenue, ancillary revenue were collectively up QoQ by 75%, charting MYR 389.2 million and MYR 123.3 million respectively. Freight and cargo recorded at MYR 36.2 million as the company recalibrated its pivot on scheduled flights operations. Of course, as I said earlier, the strong fare trend is evident in the ABF, grew by 153% to MYR 785 per pax in first quarter 2023 compared to MYR 513 in one quarter 2019. Net operating profit surged 308% from net operating loss of MYR 29.5 million in the same period in 2019. AirAsia actually recorded a net profit of MYR 328 million in one quarter 2023 against 7x increase of the net profit of MYR 43.3 million, and removing the reversals of provision of tax exposure on its investment of joint venture and doubtful debts [are not net profit] remains at MYR 62 million. Again, the shareholders equity, as I said, has turned around at MYR 40.8 million.
ASK grew as we are growing a number of flights by month. We've pretty much increased by about two to three planes. Seats flown increased to 1,721 seats as compared to 2Q 2022. Again, compared against the same period in 2019, ASK capacity has recovered by 33% overall and 81% of aircraft bases, while seats flown recovered by 36% per period between January and March 2023. Key operational highlights. Load factor in the first quarter 2023 remains solid at 80%. As you can see, the trend improving from Q2 2022. This is pretty much close to our pre-pandemic load factor of 83% in 2019. This reflects a recovery over 96% against the same period in 2019, demonstrating that the passenger demand and the robust of traffic for post-COVID is still high as always. High-performing routes are Delhi, Tokyo, Incheon, Australia, all posting close to 90% load factor during the quarter.
A total of 504,476 were carried in 1Q 2023, driven by strong demand of market due to New Year and spring travel season, especially holidays and school that this time around in Malaysia was extended to about March. RASK improved 41% compared to 2019 on the back of stronger fare. Of course, cost per ASK has reduced over 50% to MYR 0.065 in 1Q 2023 against the same period in 2019. Won't talk much about ancillary, but I think the key selling is basically our RPP has improved for ancillary MYR 244. Baggage fees has increased, especially on the take-ups. We've also increased the number of kilograms that passengers can buy. There is now an option to buy 60 kg and the take-ups of that has been great. Also, in terms of dynamic pricing for baggage, has also been included into the business.
Seat fees as well, the potential of buying hot seats and also upgrades has done well for us. Also the hot seats has also shown quite an improvement in our take-ups. In-flight meals and beverage, even though we have not gone to pre-levels yet, in terms of the stocks, but I think the take-ups on the current stocks that we have has also shown good improvement. On our others, we have not grown yet our duty-free and our merchandise yet. It's been at very low levels now due to stock shortage, but I think coming from June onwards, pretty much all the stocks for duty-free will be stocked up back to pre-pandemic levels and also our merchandise. Thai, I'll just cover a bit about it. As you know, Thailand is a natural hub for its tourism. Therefore their revenue is MYR 356.8 million in first quarter 2023.
EBITDA is recorded MYR 90 million, recovery rate of 152%, and their load factor is stellar 88%, mainly inbound into Bangkok. Of course, the Thai's travel into Japan and Korea is fairly strong in that market. Also, they are planning to also add more aircraft in their fleet in the coming years. Net operating profit at MYR 64 million, recovery rate about 128%. Net profit sits at MYR 92 compared to MYR 50, and the cash remains robust at about MYR 157 million, from MYR 193. As again, their rehabilitation plan is still progressing as planned on that. Network overview, just to talk about a bit about the business. Currently, we are operating close to 17 destinations. Seven destinations now operate daily flights or more. Returning to China, we have just started our ramp-up in China this year.
Our first route that we started was Hangzhou, then started Shanghai, then Beijing, and of course, Chengdu coming up. Some flights are going over to 10 flights a week. Other markets that we are looking at, again, we are still in the progress of looking at Istanbul and also some other routes in Central Asia to see how we can plan a robust demand for AirAsia. We are also looking at high-demand cargo routes for short-haul. We have just started Bangkok. As you know, the demand for palletized cargo out of Bangkok is high. As we feed some of our flights into XJ, which is Thai AirAsia X. We have also, as you know, we are also doing Bali as well. Of course, BKI on some routes doing Gawai and Raya. But that is the main routes that we are doing. Fleet activation.
Number of aircraft in the fleet at the moment is 17. 11 operational, six awaiting activation. Three of the six is basically planes that are being serviced and are waiting to be serviced. The other three are additional three planes that we have taken, but waiting for approvals from CAAM to be inducted into the business. We will be looking at growing that number over the next few years, to go back to our potentially traditional years, traditional 24 potentially down the road. We are basically also adding, as I said, we are adding more flights, but the one thing that we did also is because of the rarity of getting A330s in operation, the demands, the supply for A330s is not great. Also when we secure all this aircraft, we secure when the market was fairly slow. We managed to Sorry. Something in my throat.
What we did is we tried to secure aircraft fast at a very low rate from the leasers that we got. We were in the sub 230,000s. Therefore we took the plane as is. Some of the configurations were slightly different than the current 377. But the idea is, in the next one or two years, once the MRO starts taking in planes for these refitting, we will start submitting that in for changes. Secondly as well, currently, as you know, there is a global shortage of raw materials everywhere in the aviation business, from tires, from wheels to seats and all that. So the timeline for getting new seats also is taking a while. They are looking at about one and a half years to two years delay.
I think this is a project that we will start converting the current different configs in about two years' time. Next. Our priorities today is basically at the network plan. We will try to maintain as much as we can in terms of yields to maintain at the highest level. Of course, there is seasonality. But the key thing is to ensure that the company remains profitable. Pricing management, as I said, we are looking at potentially maybe some capacity management during the low seasons. But I think as both airlines, AirAsia and AirAsia X grow, the more ability to have connections will be important. As we grow, potentially the ability to have slower months will not be there. Hopefully, we will try to look at trying to reach maximum capacity recovery probably in the next end of next year or as such.
As I said, we are in discussion with Airbus to bring aircraft in. As you know, we are targeting to bring A330neos in 2026. We are trying our best to accelerate that faster, but let's see. We will also remain careful that MRO slots and activation capabilities is tough. We are starting to ride on also the ADE coming in the business, hopefully that they can start doing A330s as well, hopefully next year. The good thing about manpower is, as I said in the last call, we have pretty much reactivated all our furloughed staff. Basically, those are new hires. We gave first options to all our staff that we had to let go. Majority decided to come back. For those who had decided to move on.
We have also started onwards in trying to hire our foreign crew that almost our foreign crew we let go during COVID, and we are giving them options on routes that are language-constrained, the Korean, the Japanese, potentially in India as well, where we are currently hiring local crew coming in. Cost remains at our highest priority. The team and finance looks at our cost day by day, night by night, to make sure that we remain very lean, especially on our costings. Cash position is monitored quite tough to ensure that we have a huge buffer during downtimes, whether it is currency or whether it is fuel. We want to make sure that we have a sufficient buffer to move on. Key thing, again, just to keep highlighting people, the survivability of AirAsia X and also the whole AirAsia ecosystem is together with the whole group.
Obviously, we have online sales distribution with AirAsia, where airasia Superapp has assisted in selling our tickets on that. They helped us in making sure that they do our marketing, are selling for us. We also work together with short-haul to ensure that we promote Fly-Thru connections as a key business model for us. That hasn't changed. Of course, cross-selling AirAsia inventory to new customers moving forward. Teleport, again, has always been the key business driver for us during COVID. As we move to passengers, we make sure that a lot of our routes are dedicated to the key strongholds of Teleport to ensure that our bellies is filled up. Average belly that we are carrying about 6 to 7 tons. Of course, trade and e-commerce is huge.
There will be routes that potentially we will identify where it is high cargo market, where potentially will be short-haul. We are keen to do that as well. As well, there is also the removal of cross-border screening that has helped reduce costs even further. ADE, the goldmine of AirAsia Group, basically our Part 145 maintenance has been moved to ADE. Basically, all our maintenance is now being taken care of by ADE. That reduces my manpower obligations and basically we are charged with the service. Also ADE as well, as I said earlier, they are looking to secure approvals for the A330s next year. Hopefully, it gives us the ability to, especially with the local, the cost environment in Malaysia is much cheaper. We probably be much better to send our aircraft into ADE in Malaysia. More coming, again, streamlining all the back-end services that we are working with.
In-flight services, a lot of my in-flight is run by Santan, where they service all our flights through their catering business. I think sales and distribution channels, where we work with travel agents across the whole region and the world where the team supplies us with inventory. Of course, ground handling, that is one of the early companies that was spin-off as AirAsia Group, where they handle all our flights above wing at KLIA 2 and all the other stations potentially around the market. That is just a presentation for Q1 2023. Just to sum up, it was a good quarter for us, coming from the back of 4Q or 6Q 2022. We are trending in the right direction, and hopefully, the next second, third quarter will be a very good 2023 for AirAsia. Thank you, everybody. Any other questions?
Hi, everyone. Just to repeat again, if you have any questions, please unmute yourself to speak, or you can opt to put it in the chat box. We have one question from Daniel.
Hey, Daniel. What is up?
Hey, good morning. Can you guys hear me?
Can.
Okay. Wow. A very good set of results indeed. Just a few questions there. Firstly, can you clarify more on this reversal thingy? What is the total? It says it's about MYR 261 million, but when you look into your cash flow, it doesn't seem to indicate so.
No, the reversals is basically non-cash items. As you know, if you recall, when we released our full year audited results, we put in through some provisions. One of the provisions that took the biggest hit in the 2022 annual report was the Indonesia AirAsia X tax provisions. Basically, we are in negotiations with the tax authorities in Indonesia, and the auditors asked us to put through the potential exposure that may have with Export-Import Bank. But generally, this is a local exposure, but just to be prudent, whether they come and take action against a 49% shareholder, it's another question. But just to be prudent, we put through about MYR 200 + million provision in the audited accounts. MYR 203 million, actually, to be exact.
Because they are working closely with the tax advisors, we looked at the latest report at some of the cases that are brought up on our side, and potentially the ones that can be reversed out based on the success rate of negotiating with the tax advisory is we're looking at about MYR 95 million of tax reversals. So we put that back already. Okay? Again, this is non-cash. All right?
Okay. The other one?
Yeah. One by one.
All right.
It's okay. The next one is the TAAX restructuring. As you know, the TAAX one, initially, last year, I think many quarters back, we wrote down all our exposures for TAAX. It's about $171 million of owings that they had to us, because they were going into the rehab. Based on the restructuring that they're going to, they are looking at a 95% haircut, and basically 5% will be paid back to us. That is still in discussion, it's 5%-7%, but in prudence, we've decided to reverse back that 5% that potentially will be voted in that scheme. So that totaled up to about 53 million, if I'm not mistaken. Yeah, 53 million of tax, that's it. Okay?
Okay.
The next one is travel vouchers. As you know, also that one, we wrote down, we threw the kitchen sink for all the passengers that was impacted. Basically, we are just reversing back based on this year's burn rate for people that are redeeming our travel vouchers. Okay? These are people like yourself who go on holidays, then COVID happened. We couldn't give you cash back refund, we give you travel vouchers, right?
Yeah.
We already provided that a long time ago. Now people are redeeming it. We just assume that currently the burn rate of redemption per quarter is 3%. The total for that is about MYR 117 million. This is in line with what we have been advised by our auditors to make sure that it is done. The key important message is the core operating profit is very strong. These are just reversals that we had to do. Even without this also, we are still fairly strong.
Okay. The last question is MYR 117 million, is it?
Yeah, MYR 117.1 million.
Point one. Okay. What is the total amount for this one in actual fact?
What was your question? Sorry.
What is the total amount? MYR 117 million is just a portion of it, right? How much was the total then?
Oh, the other is all minor stuff. That is actually the main reversal.
These travel vouchers, you only reverse back based on your-
No, that's it. Everything about MYR 266 million.
Oh, okay.
Nothing else. No other reversals for this quarter except for those three.
Okay. Can I check this IAAX tax provision, right? In your note, you mentioned it's 2018, 2019 tax thing.
This one is 2017.
Oh, this is 2017.
No, 2017, 2018, 2019, right? Yeah, before rate. Before rate. Yeah.
For three years now, because in your notes, I think it is only mentioned 2018.
For three years. Yeah.
For three years. Mm. Okay. 2018, 2019. Can I check, why did your depreciation charges actually went up this quarter compared to previous quarter?
That one I let my finance person, because this is part of the auditor's requirements again. Let her explain to you.
Yeah, this one is actually same with the rights of use, whereby we have actually straight-line basis recognized the depreciation for our leases. Previously, we tried to negotiate with them, saying that with PBH, pay by hour, we need not actually recognize depreciation on this aircraft. But actually, the standard says so we need. In that case, we are actually following whatever the ROU standard is. It's straight-line depreciation. It's per quarter, about MYR 35 million.
Unfortunately, there's a bit of double counting here.
Yeah.
Until the PBH ends, there'll be a bit of double counting there. Unfortunately, we went all the way up to the top people at the accounting board. Got there. Because we're unique, because not many people have PBH.
Yeah. The pay-by-hour usage is until year-end, is it?
March next year.
March next year. This pay-by-usage is for your current 14 aircraft?
No, only for nine.
Only for nine aircraft.
The others are all fixed, because those are additional planes that we took in.
Specifically, this depreciation charge is similar to lease charges, I think.
Yes, correct.
Okay. Let's see. Last time, how do you recognize this pay-per-hour basis? Which one do you?
We don't. Before it was under. Where was it before when it was?
Before that, you only see aircraft lease expenses. Depreciation is only for fixed leases.
No, but before this came through, when we did the PBH, before that, where was it sitting? Wait-
There was this one.
No. This PY thing just came through, right?
Yes.
Before this, where did we recognize it?
The depreciation? Didn't.
Oh, no. You-
Yeah.
Yeah.
Before this, what happened is that those PBH aircraft, we didn't recognize any depreciation.
No depreciation, but you still have to expense it out, right? In terms of-
Yeah, expense it at the aircraft lease expense. There's a line, aircraft lease expenses.
Lease expenses. Okay.
Under user charges.
Under user charges. Right.
Mm. Those are PBH.
I see. Okay, I noticed that your TAAX, you mentioned your profit for this quarter is MYR 90 million. Is this core profit or is it because of a reversal of something else and also plus the forex?
That one we're not sure. I have to check with them. But I think if I'm not mistaken, it's core profit. I don't think there's any reversals on their side.
Just want to check your number aircraft. In your slide 18, I think it is mentioned that you are going to have 17 aircraft by end of this year, but 16 will be operational by end December, correct?
Yeah.
That means you are-
Currently, we have 18 planes, Daniel. In that, we are currently flying about 11 now. I think 12 will be next week or something. The balance, all the planes are being- three is on ground, which is still sleeping, waiting for MRO slots. The balance of that is basically planes that are just waiting for CAAM approval.
CAAM approval?
So basically, if we have-
You need-
Huh?
You need-
Again? What?
You need to go through MRO, is it, for CAAM approval?
No, these aircraft that come in. Okay, let me clarify again. There are planes that are sleeping. They need to go for MRO. Okay? I cannot send it anywhere else. I can only send it to Malaysia Airlines. Okay? Our first aircraft is going to go in on the June 1st, and it will take two months. Okay? So that three aircraft will go two months back to back, and after that, the three planes will complete everything. One will come out after two months. Then after that, I have to get certification, and it will be about three months all in total. Okay?
Okay.
After that, the last plane of the three will be out and serviceable by April next year. Okay? So all that will be 18. But already, as we speak now, there are about two planes that are sitting at the MRO now, waiting for bridging check, because these planes have been brought in from another airline. So bridging check means that we have to do just minor services first. Then once that is completed, we submit that paperwork to CAAM, and CAAM will approve it. That will take about a month and a half. So that two will be ready. One will be ready, I think, next week, or the week after, and the other one will be ready two months down the road.
Okay. I look at your second, your page 19. Okay? Your page 19, you say bring it in, but only will start operation the five aircraft. Isn't it a bit contradicting with the numbers?
Sorry?
If we look at slide 19 and 18 of your slide.
Okay. Add an aircraft to the fleet. Correct. So basically, we started with nine aircraft. When COVID happened, when all the restructuring happened, okay,
Yeah
we have nine planes. All right?
Yeah.
We had 24 planes before that. Okay? So 24 -9 , all the other planes have been returned. Okay?
Yeah.
All right. On top of that, we have taken two planes in from a lessor. These are the ex-Philippine Airlines aircraft. That is two. That's flying. Okay? After that, we have taken two of the planes that were taken back by our-
Lessor
Lessor . These are ex-ECA planes. That two has come in.
Okay.
That is flying already. Then after that, we took another two more from our ex-lessor, when they cannot find home for it, and these are APLG aircraft. All right? These are also flying. Then after that, we taken another two, which is the ex-SQ planes. These are the ones that I mentioned to you that are still in the bridging waiting for it, right? Correct.
Okay.
Okay. You can see here, we have taken a total of eight planes back.
Yep.
Okay? That is, 17. Plus, of the nine that I currently have, in the prior one, three is sleeping.
Oh, okay.
On ground.
Okay.
The ones that I told you they have to go to MRO for two months.
Yep.
Out of the nine, only six is operating. So 6 + 2 + 8 + 10 + 12 + 14, technically.
Okay.
The other one is out of the 14, one is a spare aircraft that we make sure that to cover the maintenance run. So actually, we only have about 12 planes operating. 13. You get it?
Yes. I mean, you just looked at your page 619.
Yeah. I know.
You say that.
Ask Jane. Yeah. You ask Jane. Jane's rocket science table, I am not sure, but that is how I Yeah.
Okay. You sit here, the manpower management, all these issues. At this moment, you do not see any support shortage of manpower?
No.
Or you guys need to hire at a higher cost base now?
No. Still the same.
I see. Okay. What else?
You ask so many questions, but you still don't cover us, Daniel.
Next quarter.
Ai ya. You like 100 questions, but you don't cover us.
That's why I'm going to understand more first.
Okay.
You have started short-haul courier services to Bangkok.
Yeah. I thought I'm not going to DMK, I'm going to BKK, Suvarnabhumi.
Wow.
Suvarnabhumi. The old airport, the big airport.
Are you still flying to BKK route and-
No, we stopped. I think we are operating till end of the month, I think. Correct? BKK. You are talking about BKK or BKI?
BKI.
Oh, no. We are operating, I think another week or so, during Gawai, then we stop.
So for you to stop soon.
Yeah. That just to assist in case a shortage of aircraft for that market.
You do not risk it to Capital A for this operation?
No, we applied for new application for ours. It is a D7 registered flight.
Okay. My-
The revenue, I know what your next question is. The revenue goes to me.
Yeah.
Doesn't go to Capital A.
Just wanted to check. Basically, AirAsia X has started flying short-haul route now, combination of short-haul and medium-haul.
Yeah. But we already started a while ago already. BKI, BKK, we only do it during seasonal, Hari Raya, Chinese New Year, Gawai, Christmas. We do it at school holidays, when they need, there is a shortage of demand. They've got their load factor for short-haul, Capital A, is about close to 100%. So we support them. The other one that we do already from day one before is Bali. That one also is a very high-density route, which we are supporting. Then now Bangkok, we're doing is to support also because there's a huge demand for connecting cargo on wide-body to wide-body. As you know, XJ operates out of Suvarnabhumi, so we're going there.
Okay. All this revenue goes to you guys?
100% goes to us, yes.
Okay. That is all for me. Thank you.
Okay.
Next one we have [inaudible] . Hi, [inaudible]
Hey. Hi, guys. Hi, Ben, Jacqueline, and Jane. If you can humor me, I have got three questions. First is on the IAAX tax issue. Could you elaborate as to what was the nature of this dispute? That is one. Number two, just wondering, right now, fares have come off a bit, but also cognizant that oil prices have come off a lot as well. Is there a certain RASK/CASK spread that you will not breach, as in you will keep this RASK/CASK spread at all costs, otherwise, you will just cut capacity. Number three, yeah, compressor turnaround, so they have delivered more than two quarters of profits and your equity is already positive. Can you go to Bursa tomorrow and ask to be lifted from the PN17 status? Yeah, that is all from me. Thanks.
Okay. Thanks, Sam. On the first question, IAAX is, actually, basically this historical submissions of tax numbers. There was some inaccurate numbers that were submitted in the past by IAAX, so we are just going there. Also, there's also under-provided revenue that was declared at IAAX. Now as the company has now really pretty much dormant, we are assisting for the tax agent to look into this. Again, the idea is to make sure that we liquidate this company in time. I think we have to make sure that we clear all the tax exposures there first. When I say clear, it means make sure that it's justified and everything. Whether they will come and take actions against the 49% shareholder I doubt it, but there has never been a precedent in Indonesia where the taxman goes after the foreign shareholder.
But just as prudent, Ernst & Young has put that as a potential exposure for us for the three years of tax exposures that potentially can be charged to the company. Of course, that total amount that is exposed, 49%, we only take credit of the 49%. Okay?
Right. Okay.
All right. Number two, in terms of your RASK/CASK spread, we have all kinds of sensitivities. We have a fuel price sensitivity on where we introduce fuel surcharge or when we remove it. We still feel that fuel is still volatile, but positively on the upside. Of course now, we also take into consideration that the currency also is moving up.
That's going to be a bit tough. Therefore, we make sure that there is a RASK and CASK limit in terms of. No, there's a breakdown of where we feel that we're going to feel the heat. I think we're far from it now. For three is, yes, that's something that we're looking at. But the key thing, yeah, with that, something that we need to discuss internally with the board and also the advisors to see whether that's the route forward. But yes, technically, we are in the positive, and that should be good news for us.
Right. Just to confirm one thing. So on the IAAX tax issue, it's a tax on revenue and not on profits, right? Because IAAX was never profitable, right?
Yeah, I think so. Yeah.
Right. Okay. Just humor me one last time. Just playing devil's advocate. Basically, actually, Capital A needs you guys more now than the other way around because of your positive shareholders' equity, right? Is there an alternative plan where you will plan to uplift yourselves from the PN17 status by yourself?
We're looking into everything, but the key thing, we do also need them. They are a big conglomerate. We rely a lot on our businesses with them. We have to make sure that we sit tight and make sure that how we want to move forward with this. But yes, you're right. Yes, we can potentially look in coming out of PN17 ourselves. But we're going to make sure that we align with Capital A to make sure that it's done accordingly.
Right. Okay, sure. That's all for me. Thanks, Ben. Thanks.
Ahmad, are you still there?
[inaudible]
Oh, okay. Ahmad has some questions, but I will reply him separately. Okay.
Daniel here again. Wanted to check.
It is you again.
Yeah. Your 6Q last quarter, I noticed that in your latest slide, you actually adjusted it downwards to MYR 127 million NOP. What is the adjustment for MYR 270 million?
6Q. Let me ask her.
6Q was supposedly MYR 150 million profit based on your 6Q announcement. But when I look into your site, basically now we adjusted towards a loss of MYR 127 million.
NOP or what?
NOP.
There is an adjustment there. It is a provision. Sorry, F. Yeah, MYR 127 million. He is saying that he adjusted this. You adjusted it because of the provision, right?
Because of the MYR 223 million. You were mentioning 6Q is.
No, 6Q is different than this one, this number. Did we change it because of the IAAX thing?
Yes. Because we changed this one to audited figures. The balancing will all be adjusted in 6Q 2022.
Daniel, did you hear that?
We adjusted MYR 277 million on the
Yeah, MYR 277 million if you take into account just now when Ben mentioned the MYR 223 million.
Oh.
Yeah, MYR 223 million is actually from the IAAX provision.
Yeah, because we only provided that when we closed our accounts for the financial audit for the
Yeah, YTD
for the YTD. When we announced it that time, Ernst & Young haven't asked us to provide yet.
I see. The remaining MYR 40 odd million is coming from there?
Depreciation.
Is coming from the depreciation.
Yeah, partially depreciation, the rest is the others are the smaller ones, the others.
I see. Depreciation. I see. Okay. I noticed that QoQ, basically your forward ticket sales has come down a bit on your short term one. Is that a trend for first quarter that is natural or what? Is it because of a lower yield or lower ticket price?
I think it's from QoQ.
QoQ on your forward sales.
Oh, my sales.
Oh, okay. Because second quarter and third quarter were seasonally less performing quarter. You can see that when it comes to the results later for 2Q and 3Q, we will be okay, but it will not be as strong as it is.
I see. It is a natural thing because seasonally first quarter.
Yeah
forward is.
Usually our first, and you know this traditionally from the past, first and fourth is always our bumper quarters.
I see.
Second is slightly weak, and then third is okay.
I see. Okay. Are you guys still hedging? Have you guys start hedging oil price or no?
No. Not yet.
Still open. Okay, sure. That's all for me. Thank you.
Any other questions, guys? If you have any questions, just send Jane any queries. Again, I have to thank everybody for joining our first quarter results. I think we're looking good, looking trend. Trend is holding up. We're managing capacity quite sure we're not going to grow so much, as what we were doing pre-COVID. As you can see, as we grow back to our AirAsia, if we ever do reach 2024, where we were before, we were not going to do it overnight. It's going to take over two to three years, as some of the markets are still not bouncing back as quickly as possible. Or actually one only, China. But every other market has done well. Japan is doing very well. Korea is doing well. Australia is doing well. India is doing well. We'll wait on that.
Again, once also we do a bit more work on some other routes that potentially has potential, we may start that. Mainly more Central Asia or more the Europe side, not London. Every other route. Stay tuned. I think the key for us is to make sure cash remains strong and we remain solid on our balance sheet. That's where we are in the moment for first quarter and also in the foreseeable future. Guys, thanks for all your support during the years and thanks for listening. Hopefully, let's catch up on the road if we do come. Okay. All right. Thanks, everybody. Cheers.