KUALA LUMPUR: AirAsia X Bhd believes that the worst is over for the long-haul low-cost carrier and is optimistic of regaining investor confidence by posting encouraging numbers in the second half.

AirAsia X acting chief executive officer (CEO) Benyamin Ismail said the airline had seen positive signs of a turnaround and would continue to build on the momentum and keep customers happy.

"The second half is expected to brighter and the management is quite confident. You will see fewer cancellations, and everything else. We will stick to our schedule to make sure people are happy with our products," he told Business Times after releasing the company's interim results.

AirAsia X posted a wider net loss of RM132.94 million in the second quarter ended June 30, from RM128.79 million net loss a year ago. Revenue declined 2.8 per cent year-on-year to RM653 million.

Most of the airline's operating parameters turned weaker as travel demand remained low. It carried 20.4 per cent fewer passengers during the second quarter, and its load factor, or the portion of planes filled, fell to 68.4 per cent from 80.4 per cent last year.

For the six-month period, it registered a net loss of RM258.86 million against RM140.07 million net loss previously. First-half revenue, however, was up 0.5 per cent to RM1.43 billion.

Benyamin said it was not entirely fair to judge the airline based solely on the bottom line, adding that it was showing improvements operationally.

For the first half, he said, AirAsia X posted a net operating loss of RM132.62 million compared with a RM191.68 million net operating loss a year ago.

"If you look at the net operating figures, you will know that the business is sustainable. The important thing is, we are cash-flow positive and we earn enough cash to run the business and meet our daily costs."

As at June 30, AirAsia X's cash and cash equivalents amounted to RM317.34 million, compared with RM74.94 million for December 31 last year.

While the airline's operations seem to be improving, investor confidence, on the other hand, appears to be on a downtrend.

Its share price eased 67 per cent so far this year to 17 sen last Friday.

It was traded as high as 52 sen early this year and its current market capitalisation is RM705.19 million.

Benyamin believes the company can regain investor confidence by performing consistently in the next few quarters.

"We have to bring back that confidence. Give us a few more quarters, and you will see some consistency. Then, people will start believing. If we perform well in one quarter, you can say that we are lucky, but if you can do it consistently, the trust will come back."

AirAsia X has a suite of turnaround initiatives in the pipeline for the second half. They include the introduction of WiFi OnBoard, enhanced duty-free products and platform, lower insurance premium and paperless cockpit.

"For WiFi OnBoard, we have started it and are doing tests to make sure it can sustain our aircraft," said Benyamin.

AirAsia X also plans to introduce new routes in the near term. Recently, it launched the Sapporo route which will be up and running in October.

The airline also plans to launch its Honolulu route by the end of this year.

"We are also in talks for two more routes but I can't disclose anything yet," he added.

Meanwhile, AirAsia X has named Benyamin as its CEO but his formal appointment is pending the board's approval.