Budget airline AirAsia X will drop some of its flights to Australia from its Kuala Lumpur hub next year after losses from its Australian operations quadrupled to RM121.4 million (S$47.11 million) in the three months to September, the Sydney Morning Herald (SMH) reported on Thursday.

The airline, the long-haul arm of Malaysia's AirAsia Group, currently offers flights up to twice daily, depending on the route, from Sydney, Melbourne, Perth, Adelaide and the Gold Coast to Kuala Lumpur.

"Capacity allocation in 2015 will see a drop in the number of flights to Australia, while North Asia and other regions will see an increase in [THE]number of flights," the airline said on Wednesday, without being specific about which flights to Australia will be cut.

AirAsia X will also slow its aircraft deliveries and allocate the majority of its new planes to its budget associates in Indonesia and Thailand, said the SMH.

Malaysia's The Edge Financial Daily this week reported AirAsia X had in October informed staff their wages and allowances would be paid on a staggered basis because of the "late arrival of incoming funds".

AirAsia X chief executive Asran Osman-Rani is expected to announce a revamp plan for the carrier soon.