RHB Research maintains 'buy' call on AirAsia X

In a note today, it said, AirAsia X has realigned its focus to increase load factor, hence gained market share.

"This should help build a strong market position against potential competition in Malaysia (Malaysia Airlines) and Thailand (Thai Lion Air)," it said.

The research house said forward booking data suggested that the strategy was working as load factor for next five months ranged between 80 and 83 per cent.

"Accordingly, we increase our forecasts for 2017 and 2018 load factor to 82 per cent from 80 per cent, respectiveky," it said.

RHB Research set a target price for AirAsia X at 46 sen.

At 11 am, shares of AirAsia X rose a sen to 40 sen with 59.15 million shares transacted.

Yesterday, AirAsia X returned to the black with a pre-tax profit of RM27.95 million in the second quarter ended June 30, 2017, from a pre-tax loss of RM9.23 million registered in the same period last year.

Revenue surged 17 per cent to RM1.04 billion from RM883.16 million chalked up previously due to the 34 per cent increase in the number of passengers carried on the back of 26 per cent increase in seat capacity.