Malaysian low-cost carrier AirAsia Group reported on November 22 that due to the continued restrictions on air travel due to the Covid-19 pandemic during this period, sluggish travel demand and the impact of foreign exchange, the net loss in the third quarter of 2021 expanded. The company said that especially the tightening of blockades and travel restrictions in Malaysia and Indonesia have affected the group’s revenue, while its Philippine division has performed relatively strongly due to the rebound in domestic business. Overall, AirAsia Group’s net loss in the third quarter was 887 million ringgits (US$212 million), an increase of 4.1% year-on-year…
Malaysian low-cost carrier AirAsia Group reported on November 22 that due to the continued restrictions on air travel due to the Covid-19 pandemic during this period, sluggish travel demand and the impact of foreign exchange, the net loss in the third quarter of 2021 expanded.
The company said that especially the tightening of blockades and travel restrictions in Malaysia and Indonesia have affected the group’s revenue, while its Philippine division has performed relatively strongly due to the rebound in domestic business.
Overall, AirAsia Group’s net loss in the third quarter was 887 million ringgits (US$212 million), an increase of 4.1% from the 851.8 million ringgit loss in the same period last year.
Revenue from July to September fell 37% to 295.9 million ringgit. Teleport, the group’s logistics business, suppressed the plunge. Revenue from this business tripled and accounted for 53% of the group’s total revenue.
The operator’s financial statements further showed a foreign exchange loss of 216.9 million ringgits, while investments in technology, new employees, digital services and Teleport also caused losses.
The number of passengers dropped by 82%
From a numerical point of view, the airline group currently operating in Indonesia, the Philippines, Thailand and India is a long-haul budget airline under the AirAsia X brand. In the third quarter, it carried 351,971 passengers, up from 1.9 million passengers a year ago. A reduction of 82%, while the load factor is almost unchanged at 67%.
For the fourth quarter, AirAsia said that with the reopening of domestic travel in the region, the international tourism industry is picking up. Although the pace is quite slow, it believes that “as travel gradually recovers, sales are on an upward trend.”
AirAsia emphasized that it has sufficient liquidity to maintain business operations throughout 2021 and 2022, and will focus on the entire group’s restructuring plan, which includes lowering aircraft lease fees and new financing.
