KUALA LUMPUR: PublicInvest Research has issued an outperform call on AirAsia X Bhd (AAX) with a target price of 53 sen as FY2017 is seen as a good year for the low-cost, long haul airline. The research house, however, noted that in terms of capacity expansion, the AAX fleet will remain unchanged as there is no new aircraft delivery expected this year. On a positive note, AAX is expected to increase its average seat km (ASK) through better aircraft utilisation and increase its frequencies of current routes by strengthening operations in key markets like China and Australia. The firm is also positive on AAX's new Honolulu route, through Osaka, which is expected to be launched in June this year. Additionally, on AAX's Indonesian unit IAAX services, which have been temporarily suspended since September 2016, PublicInvest Research made note of its two aircraft being temporarily wet-leased to Malaysia AirAsia (MAA).

Source: New Strait Times April 10, 2017 03:11 UTC