RHB Research maintains 'buy' on AirAsia X

RHB Research Institute has maintained its 'buy' call with a target price of 50 sen on AirAsia X Bhd.

In a note today, RHB Research said it expected the airline to stay profitable in 2017 amid new route additions and slower but continuing improvements in revenue yield.

"The airline is also expected to see ancillary revenue growth and gradual recovery in associate airline operations," it said.

It said aided by lower jet fuel prices, a higher load factor and strong growth in yields, AirAsia X reported its first full-year profit since its 2016 initial public offering.

RHB Research said AirAsia X's management may add one more new destinations in Asia to deploy its spare capacity.

As at 11.41am, AirAsia Bhd eased half-a-sen to 40 sen, with 9,382,700 shares traded. -- Bernama