AirAsia’s loss widens in third quarter amid weak travel demand

Malaysian budget airline AirAsia Group on November 22 reported a wider net loss for the third quarter 2021 as a result of continued Covid-19-pandemic restrictions on air travel in the period which resulted in subdued travel demand, as well as a consequence of foreign exchange losses.

The company said that in particular, enhanced lockdowns and travel restrictions in Malaysia and Indonesia impacted group revenue, while its Philippine unit had a relatively strong quarter from a rebound in domestic operations.

Overall, AirAsia Group posted a net loss of 887 million ringgit ($212 million) in the third quarter, up 4.1 per cent compared to a loss of 851.8 million ringgit in the same period a year earlier.

Revenue from July to September dropped 37 per cent to 295.9 million ringgit, a plunge dampened by the group’s logistics business Teleport which tripled its revenue, contributing 53 per cent to total group revenue.

The carrier’s financial statement further showed a foreign exchange loss of 216.9 million ringgit, while investments in technology, new hires, digital businesses and Teleport also contributed to the losses.

Passenger numbers drop by 82 per cent

In numbers, the airline group which currently operates in Indonesia, the Philippines, Thailand and India and as long-haul budget airline under the AirAsia X brand, carried 351,971 passengers in the third quarter, 82 per cent fewer than the 1.9 million a year ago, while the load factor was little changed at 67 per cent.

For the fourth quarter, AirAsia said it was perceiving “an upward trajectory of sales with the gradual recovery of travel” as domestic travel reopened in the region and international tourism is picking up, albeit rather slowly.

AirAsia emphasised that it had sufficient liquidity to sustain its business operations throughout 2021 and 2022 and would focus on a group-wide restructuring plan that includes the lowering of leasing fees for aircraft and fresh capital raising.



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Malaysian budget airline AirAsia Group on November 22 reported a wider net loss for the third quarter 2021 as a result of continued Covid-19-pandemic restrictions on air travel in the period which resulted in subdued travel demand, as well as a consequence of foreign exchange losses. The company said that in particular, enhanced lockdowns and travel restrictions in Malaysia and Indonesia impacted group revenue, while its Philippine unit had a relatively strong quarter from a rebound in domestic operations. Overall, AirAsia Group posted a net loss of 887 million ringgit ($212 million) in the third quarter, up 4.1 per cent...

Malaysian budget airline AirAsia Group on November 22 reported a wider net loss for the third quarter 2021 as a result of continued Covid-19-pandemic restrictions on air travel in the period which resulted in subdued travel demand, as well as a consequence of foreign exchange losses.

The company said that in particular, enhanced lockdowns and travel restrictions in Malaysia and Indonesia impacted group revenue, while its Philippine unit had a relatively strong quarter from a rebound in domestic operations.

Overall, AirAsia Group posted a net loss of 887 million ringgit ($212 million) in the third quarter, up 4.1 per cent compared to a loss of 851.8 million ringgit in the same period a year earlier.

Revenue from July to September dropped 37 per cent to 295.9 million ringgit, a plunge dampened by the group’s logistics business Teleport which tripled its revenue, contributing 53 per cent to total group revenue.

The carrier’s financial statement further showed a foreign exchange loss of 216.9 million ringgit, while investments in technology, new hires, digital businesses and Teleport also contributed to the losses.

Passenger numbers drop by 82 per cent

In numbers, the airline group which currently operates in Indonesia, the Philippines, Thailand and India and as long-haul budget airline under the AirAsia X brand, carried 351,971 passengers in the third quarter, 82 per cent fewer than the 1.9 million a year ago, while the load factor was little changed at 67 per cent.

For the fourth quarter, AirAsia said it was perceiving “an upward trajectory of sales with the gradual recovery of travel” as domestic travel reopened in the region and international tourism is picking up, albeit rather slowly.

AirAsia emphasised that it had sufficient liquidity to sustain its business operations throughout 2021 and 2022 and would focus on a group-wide restructuring plan that includes the lowering of leasing fees for aircraft and fresh capital raising.



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Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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