Air France - KLM registered RECORD operating profit

1. Air France-KLM Group achieved its highest-ever operating profit margin of 9.6% in Q2 2023, driven by increased passenger volumes and reduced fuel costs.

2. Revenues climbed by 14.1% to €7.62 billion ($8.38bn) in Q2, while fuel costs fell by 11%, contributing to record figures.

3. The group's net debt decreased to €4.9 billion ($5.4bn) in Q2, down from €6.3 billion ($6.9bn) at the end of 2022, as the fleet returned to 95% of 2019 capacity levels.

https://simpleflying.com/air-france-klm-group-604-million-q2-net-income/

Absolutely fantastic news! Airlines' earnings are soaring to new heights all around the world! It's a delightful sign of progress and prosperity for the entire aviation industry!

AirAsia Malaysia and AirAsia X are cashing in on high demand from China by adding more aircraft and routes between the two countries - by Michael Doran

AirAsia X has made a remarkable recovery in the second quarter of 2023, carrying over 70 times more passengers compared to the same period last year.

The airline has expanded its operations and added more aircraft to meet the growing demand for flights, particularly to destinations in China.

https://simpleflying.com/airasia-x-returns-a330s-traffic-soars-china-routes/

Turnaround: Croatia Airlines Reports $1.87 Million H1 2023 Profit

Croatia Airlines has reported a net profit of €1.69 million for the first half of 2023, a significant improvement from last year's net loss of €21.8 million.
The airline saw a 39% increase in passengers compared to the first half of 2022, but still falls short of pre-pandemic levels in 2019.

https://simpleflying.com/croatia-airlines-187-million-h1-2023-profit/

Saudi Arabian low cost airline operator (flynas) Reports 26% Surge In Passengers For 1st Half of 2023

https://simpleflying.com/flynas-increases-passengers-1st-half-2023/

Largest Japanese Airline (ANA) Reports 1st Q1 Operating Profit In 4 Years

All Nippon Airways (ANA) has recorded a profitable Q1 for the first time in four years thanks to a surge in passenger traffic both domestically and internationally.
The airline's international revenue almost tripled compared to last year, and domestic revenue was up by 40%.

https://simpleflying.com/ana-1st-q1-operating-profit-4-years/

Singapore Airlines achieved record profit.

Singapore Airlines Ltd. reported its biggest quarterly net income ever and said it expects demand for air travel on all routes to remain robust through the summer peak season as it expands capacity.

https://www.bloomberg.com/news/articles/2023-07-27/singapore-airlines-posts-record-quarterly-profit-with-98-jump

Singapore Airlines Group Post Record Quarterly Profit

https://airwaysmag.com/singapore-airline-record-profits/

Singapore Airlines one quarter made SGD734 million. In Ringgit, about RM2.5 billion.

Now AAX market cap about RM1.1 billion only.

I think might as well SG Airlines offer to buy 100% stake of AAX using 1 quarter of profit

I want to say something about Capital A extension as somehow people still think it will affect AirAsia X share price significantly.

PN17 or not does not matter anymore due to these reasons:

1. Airlines recovery is a global trend, when you buy AAX you are buying into this trend more than the PN17 status upliftment. Yesterday AAX limit up even though it is a PN17 company. How many normal (non-PN17) company can limit up? 99% of stocks listed never experience Limit Up. So who cares PN17 or not?

2. Capital A and AAX issues on PN17 are different. Capital A deep in negative equity. AAX already positive equity in its balance sheet, technically pass the PN17 criteria. Just the status issue haven't confirm.

Conclusion, given these 2 choices which one u prefer?

A. PN17 company (by the name only) with potential to double earnings this year and double again next year.

B. Non-PN17 which offers 5% earnings growth this year and another 5% next year.

Go figure out.

Singapore Air Posts Record Profit With Bumper Summer to Continue

https://www.bloomberg.com/news/articles/2023-07-27/singapore-airlines-posts-record-quarterly-profit-with-98-jump

American Airlines raises 2023 profit forecast after strong second quarter

https://www.cnbc.com/2023/07/20/american-airlines-aal-2q-2023-earnings.html

AirAsia using Airbus aircraft to launch new China routes

AirAsia Malaysia and AirAsia X are expanding routes to China from Kuala Lumpur and Kota Kinabalu using Airbus A320neos and A330s.

https://www.chinatravelnews.com/article/175136

Hawaiian Airlines Highlights Strong Demand On Leisure & Japanese Routes In Q2 Results

https://simpleflying.com/hawaian-airlines-q2-results-leisure-japanese-demand/

Hawaiian Airlines has announced strong results for the second quarter of this year. The carrier closed the latest term with unrestricted cash, cash equivalents, and short-term investments of $1.3 billion against its outstanding debt and finance lease obligations of $1.7 billion.

High demand, substantial passenger loads, and the launch of several new routes contributed to solid growth. The second quarter brought an 11% bump in capacity across Hawaiian's network, with international capacity increasing by 141.4%.

UEM Sunrise continues climb to three-year closing high of 54 sen

https://theedgemalaysia.com/node/676156

Finnair raises profit guidance after positive Q2

https://airinsight.com/finnair-raises-profit-guidance-after-positive-q2/

Australia Low Cost Carrier, Jetstar Adding 140 Pilots As New Airbus A321neos Keep Coming

https://simpleflying.com/jetstar-adding-140-pilots-new-airbus-a321neos/

Ryanair (Europe biggest airline) Sees Its Q1 Profits Quadruple After A Strong Easter

https://simpleflying.com/ryanair-q1-profits-quadruple/

Delta Air Lines CEO Ed Bastian on record Q2 earnings: Momentum has continued to build

Watch here:
https://www.cnbc.com/video/2023/07/13/delta-air-lines-ceo-ed-bastian-on-record-q2-earnings-momentum-has-continued-to-build.html

Foreigners have been buying UEMS non stop in the past one week, u better get some before it is too late.

Watch this video where United Airlines CEO said that aviation growth is a multi year thing. Also, do you know that their pilot just got 40% increment?

That means the demand is REALLY STRONG!

https://www.cnbc.com/video/2023/07/20/united-airlines-ceo-scott-kirby-on-record-earnings-we-think-its-a-multi-year-trajectory.html

United Airlines Q2 Earnings Beat Expectations, Raises Guidance

https://thecurrencyanalytics.com/stockmarket/united-airlines-q2-earnings-beat-expectations-raises-guidance-60031.php

Expect 2 catalysts to AAX:

1. Upliftment of PN17 - in 7 days from now (since the due date is 28-July)

2. Strong 2Q earnings - very likely to be profitable and increase equity shareholder amount in the balance sheet more. Means it is a solid uplift from PN17 won't go back again.

United Airlines has announced its second-quarter results with a three-fold increase in profit.

1. United Airlines reported impressive second-quarter results with a three-fold increase in profit, making over $14 billion in revenue and achieving a profit of more than $1 billion.

2. The rise in profit was attributed to a substantial increase in travel demand, especially for international destinations, despite facing flight disruptions at its hub in Newark Liberty International Airport.

3. United Airlines' operational performance and network enhancement contributed to its strong performance, with domestic margins returning to 2019 levels and international margins surpassing pre-pandemic levels. The airline flew the highest volume of revenue passengers since pre-pandemic and experienced significant growth in its MileagePlus program.

https://simpleflying.com/united-airlines-14-billion-operating-revenue-q2-2023/

EPF bought more...

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3370024

Changes in Sub. S-hldr's Int (Section 138 of CA 2016)
INARI AMERTRON BERHAD

Particulars of substantial Securities Holder
Name EMPLOYEES PROVIDENT FUND BOARD
Address 5th Floor, EPF Tower
No. 1, Persiaran Kwasa Utama
Shah Alam
40150 Selangor
Malaysia.
Company No. EPF ACT 1991
Nationality/Country of incorporation Malaysia
Descriptions (Class) Ordinary Shares
Details of changes
No Date of change
No of securities
Type of Transaction Nature of Interest
1 13 Jul 2023
1,678,000
Acquired Direct Interest
Name of registered holder Citigroup Nominees (Tempatan) Sdn Bhd - Employees Provident Fd Bd (CIMB Pri)
Address of registered holder Level 42, Menara Citibank 165 Jalan Ampang 50450 Kuala Lumpur
Description of "Others" Type of Transaction

Circumstances by reason of which change has occurred Acquisition of shares
Nature of interest Direct Interest
Direct (units) 419,117,210
Direct (%) 11.228
Indirect/deemed interest (units)
Indirect/deemed interest (%)
Total no of securities after change 419,117,210
Date of notice 14 Jul 2023
Date notice received by Listed Issuer 18 Jul 2023

Both NVIDIA and Inari are companies that are related to semiconductors in different ways.

NVIDIA is primarily known for its graphics processing units (GPUs) that are used in various applications, including gaming, artificial intelligence, data centers, and autonomous vehicles.

Inari is a company that manufactures electronic components, including semiconductors. While Inari's focus extends beyond semiconductors to include other components like antennas, they do produce semiconductors as a part of their product portfolio. These semiconductors can be used in various electronic devices and applications.

Both NVIDIA and Inari are involved in the semiconductor industry, but they have different areas of specialization and focus within that field. NVIDIA's main strength lies in GPU technology, while Inari's expertise encompasses a broader range of electronic components, including semiconductors.

Nvidia rises as Citi reiterates buy, boosts estimates on rising GPU demand

https://seekingalpha.com/news/3987966-nvidia-rises-citi-reiterates-buy-boosts-estimates-rising-gpu-demand

Both Nvidia and INARI business also related to semiconductors, so INARI is also beneficiary

EPF keeps buying ...

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3369705

Circumstances by reason of which change has occurred Acquisition of shares
Nature of interest Direct Interest
Direct (units) 417,439,210
Direct (%) 11.183
Indirect/deemed interest (units)
Indirect/deemed interest (%)
Total no of securities after change 417,439,210
Date of notice 13 Jul 2023
Date notice received by Listed Issuer 17 Jul 2023

Air New Zealand Lifts FY2023 Profit Forecast To No Less Than $580 Million
BY MICHAEL DORAN PUBLISHED 17 HOURS AGO

After some big changes in its fortunes in the last six months Air New Zealand now expects to make at least NZ$580 million in FY23.

https://simpleflying.com/air-new-zealand-profit-forecast-no-less-580-million/

AAX issuance of shares will be to acquire aviation asset from Cap A. After completion, it will be a pure airlines play. People will benchmark against SG Airlines which is trading at 20x PE historical.

AAX easily make 60 sen EPS per year for 2023. Give 5x PE already RM3 value.

Profitability Forecast For Airline Industry Doubles To Almost $10bn
BY JONATHAN E. HENDRY

Estimates are twice the previously predicted $4.7 billion, but profit margins remain small at just 1.2%, equivalent to just $2.25 per passenger.

Source:
https://simpleflying.com/airline-profitability-doubles-iata-2023/

Strong earnings rebound but Aberdeen keep on selling. Anyone know why ? Hard to play leh like that. ...

The profit should be lower if exclude the tax write back effect:

In the current quarter, the Company recorded tax write back of RM13.6 million due to the income overprovision in prior year of RM3.7 million and recognition of deferred tax asset for unutilized special reinvestment allowance estimated at RM13.8 million which is expected to offset against future profit. As a result, the Company recorded profit after tax of RM23.1 million in the current quarter.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3357246

British Airways' owner IAG raises profit guidance as it sees capacity at 97% of pre-pandemic level

The company says demand for international travel is high despite the squeeze on family budgets while falling fuel prices are also helping improve its profits outlook.

https://news.sky.com/story/ba-owner-raises-profit-guidance-as-it-sees-capacity-at-97-of-pre-pandemic-level-12873421

"As of May 2023, AirAsia X has 17 aircraft within its fleet with 11 activated and operational, and we aim to activate more aircraft by the end of the year."

This AAX now only operate at 65% of its full power because 6 more aeroplane will be activated gradually from now to December.

Source: https://simpleflying.com/airasia-x-raising-11-million-reactivate-airbus-a330s/

Good earnings but low volume, hard to play

AirAsia X Raising $11 Million To Reactivate More Airbus A330s
BY MICHAEL DORAN PUBLISHED 17 HOURS AGO

1. AirAsia X is raising $11 million to reactivate its fleet of Airbus A330s.
2. The airline is doing this in order to meet the growing demand for air travel.
3. The reactivation of the A330s will allow AirAsia X to offer more flights to more destinations.

Source:
https://simpleflying.com/airasia-x-raising-11-million-reactivate-airbus-a330s/

Focus on fundamentals...

Earnings surge for Thai airlines as tourists return

1. Thai Airways International reported a surge in earnings for the first quarter of 2023, as tourists returned to Thailand in droves.

2. Net income for the quarter was 12.51 billion baht ($380 million), up from a loss of 3.25 billion baht in the same period a year earlier.

3. The surge in earnings was driven by a number of factors, including increased demand for air travel, higher fares, and lower fuel costs.

Source:
https://themalaysianreserve.com/2023/05/15/earnings-surge-for-thai-airlines-as-tourists-return/

Earnings surge for Thai airlines as tourists return

1. Thai Airways International reported a surge in earnings for the first quarter of 2023, as tourists returned to the country.

2. The airline's net income for the quarter was 12.51 billion baht ($380 million), up from a loss of 3.25 billion baht in the same period a year earlier.

3. The surge in earnings was driven by a number of factors, including increased demand for air travel, higher fares, and lower fuel costs.

Read here:
https://themalaysianreserve.com/2023/05/15/earnings-surge-for-thai-airlines-as-tourists-return/

Qantas (Australia's largest and most prominent airline) Forecasts Biggest Ever Profit From Increased Flying And More Aircraft

1. Qantas is upgrading its forecast on its profit to between AU$2.425 billion and AU$2.475 billion (from $1.625 - $1.658 billion) in the financial year ending June 30th, 2023.
2. The airline's profit is being driven by continued strong demand and the completion of its three-year recovery program.
3. Qantas will be operating domestic capacity at 104% of pre-COVID levels by the end of FY23 due to the return of lucrative travel on the Golden Triangle routes between Melbourne, Sydney and Brisbane.

Read here:
https://simpleflying.com/qantas-biggest-profit-increased-flying-more-aircraft/

This big investment from institutional player is a sign that PN17 Uplift Is Near.

It can be 3 months, or 12 months. Why? Bcos the funds must have done a lot of due diligence. U think so easy fund can approve RM50 million to invest in a PN17 company share? Lots of meeting and justification and paper work needed ! They have done the check that PN17 uplift is a real possibility only willing to invest RM50 million. This is not your RM5000 or RM50,000 but RM50,000,000.

Ryanair (Europe biggest airline by market cap) rebounds to near-record profit as summer bookings soar

1. Ryanair made a near-record profit of €1.4 billion in 2022.

2. The airline expects to make even more profit in 2023, thanks to a surge in summer bookings.

3. Ryanair plans to add 50 new aircraft to its fleet in 2023, which will allow it to carry more passengers than ever before.

https://www.theguardian.com/business/2023/may/22/ryanair-profit-summer-bookings-aircraft

Philippine Airlines Posts Q1 $135 Million Operating Income
BY MICHAEL DORAN

1. Philippine Airlines (PAL) posted a Q1 operating income of $135.2 million and a total comprehensive income of $108.2 million, which is a significant improvement from the same period last year.

2. Passenger numbers grew by a staggering 156% compared to the same time last year, with PAL carrying 3.4 million customers in the first quarter. This is a sign of the strong demand for air travel as COVID-19 restrictions continue to ease.

3. PAL is well-positioned to continue to grow and succeed in the years to come. The airline has a strong financial position, a loyal customer base, and a network that spans the globe.


Full news here:
https://simpleflying.com/philippine-airlines-post-135-million-income/

Water demand increase in Johor by 50 million litres a day according to Suruhanjaya Perkhidmatan Air Negara (SPAN).

Spritzer is well-positioned to benefit from the increased demand for bottled water, and its share price could rise as a result.

https://www.msn.com/en-my/news/berita/cuaca-panas-penggunaan-air-di-johor-meningkat-50-juta-liter-sehari/ar-AA1bloXr?ocid=entnewsntp&pc=U531&cvid=3e77d48595b54eadb9bef2e99b5a4707&ei=63

Airline Business Index shows industry close to 2019 size amid soaring revenue

By Lewis Harper
18 May 2023

The latest Airline Business Index shows the global airline industry’s revenue soared even further above 2019 levels in the first quarter of 2023, as the sector moved to within touching distance of its pre-Covid size.

https://www.flightglobal.com/airlines/airline-business-index-shows-industry-close-to-2019-size-amid-soaring-revenue/153327.article

3 Key Points

1. Singapore Airlines (SIA) reported a record annual profit of S$2.16 billion (US$1.63 billion) in 2022, reversing three straight years of losses.

2. The profit was driven by a strong recovery in passenger demand, as well as cost-cutting measures implemented by the airline.

3. SIA's shares soared to their highest levels in more than three years on Wednesday, May 17, 2023, as investors cheered the strong results.

Full news here:
https://www.channelnewsasia.com/business/singapore-airlines-sia-shares-soar-more-3-year-high-record-annual-profit-3494416

AAX very likely to register EPS better than 4Q since their passenger volume surge 49% Quarter-to-Quarter in 1Q 2023

Cebu Pacific (Philippine low-cost airline offering domestic and international flights) swings back to profit in 1Q 2023!

Cebu Pacific returned to the black in its first quarter earnings, helped by a strong rebound in passenger revenues, as it anticipates returning to pre-pandemic international capacity by end-June.

https://www.flightglobal.com/airlines/cebu-pacific-swings-to-first-profit-since-pandemic/153159.article

China Ditches PCR Test Requirements For Inbound Travelers

China has revealed it will scrap its PCR test requirement for inbound travelers at the end of the month. Passengers will only need to show a negative rapid antigen test result from April 29th.

Read it here:
https://simpleflying.com/china-drops-inbound-traveler-pcr-test-requirement/?newsletter_popup=1

This is positive news to AAX as it is now much easier for people to travel to China!
1st Quarter superb result (due in 10-15 days may be just the beginning...)

How much is Spritzer worth? Come come and check here...

https://klse.i3investor.com/web/blog/detail/bestStocks/2023-05-15-story-h-270619056-Spritzer_Target_RM3_30_38_upside_HEAT_WAVE_to_drive_mineral_water_sales

Japan’s Biggest Airline Company By Market Cap (ANA) Turns First Post-Pandemic Annual Profit

All Nippon Airways beat profit expectations during the fiscal year ending in March as travelers eagerly returned to Japan.

Tokyo-based ANA said inbound international travel demand increased “dramatically” in the fourth quarter. This helped propel its full year operating profit 120 billion Japanese yen ($875 million), and operating margin to 7 percent. In February, ANA forecast a roughly 90 billion Japanese yen operating profit and margin of around 5.6 percent. The airline reported a net profit of 90 billion Japanese yen for the year ending in March.

Full news here:
https://airlineweekly.com/2023/05/japans-ana-turns-first-post-pandemic-annual-profit/

Last time I mentioned ...

Waiting for 2 good news now:
1. Approval for extension of regulatory plan somewhere this week. (Turned out to be true but late for 2 weeks)
2. Superb earnings in end May. (Wait for 2-3 weeks then we shall see)

Superb earnings forecast remain intact.
Waiting for more upside ahead !

In short, EY the big four accounting firm OK with AAX account for 2022