STARLUX Airlines Co Ltd (2646.TWO) Q3 2024 Earnings Report

STARLUX Airlines reported a robust QQ3 2024 performance in a capital-intensive expansion cycle. Revenue climbed to 9,594,592,000 TWD, up 52.4% year-over-year and 15.1% quarter-over-quarter, supported by ongoing fleet deployment and favorable route/mix dynamics. Gross profit rose to 2,069,836,000 TWD, delivering a gross margin of 21.57%, an improvement versus the prior-year quarterly margin and signaling better unit economics as capacity and yields recover. EBITDA reached 2,343,147,000 TWD with an EBITDA margin of 24.42%, underscoring operating leverage despite the absence of a reported operating income in the quarter. Net income for QQ3 2024 was 634,962,000 TWD, yielding a net margin of 6.62% and a solid bottom-line showing in a ramp-up period for a growing airline. On a per-share basis, reported EPS was 0.25 TWD, versus 0.30 TWD in the prior-year quarter, reflecting the effect of share-base dynamics and the quarter’s earnings mix. The company generated 2,301,029,000 TWD of cash flow from operations but invested heavily in capital expenditures (PPE) of 7,106,618,000 TWD, resulting in a negative free cash flow of 4,805,889,000 TWD for the quarter. The balance sheet shows a substantial asset base with total assets of 100,462,409,000 TWD and significant leverage: total debt of 33,685,300,000 TWD and net debt of 25,661,332,000 TWD. Cash and equivalents stood at 8,023,968,000 TWD at period end, with a current ratio of 0.682 and a quick ratio of 0.606, signaling near-term liquidity considerations in the context of a capex-heavy expansion. Overall, the QQ3 2024 results illustrate a growth-inflected phase for STARLUX, characterized by meaningful top-line momentum and improving gross profitability, but offset by substantial capital outlays and elevated leverage that will require a sustained runway of earnings growth and cash flow improvement to drive deleveraging and positive free cash flow in ensuing quarters.