KUALA LUMPUR - AirAsia Group recorded a US$223 million net loss in the first quarter (Q1) of 2020, having posted a US$23.87 million net profit in the same period of 2019.
The low-cost airline group attributes the loss to travel restrictions imposed amid the coronavirus (COVID-19) pandemic, which has caused demand for air travel to plunge and been described by Group CEO Tony Fernandes as the “toughest challenge” the group has faced since he took control of it in 2001.
As reported by FlightGlobal.com, AirAsia Group slashed capacity across all airline units by 19% in Q1, while passenger numbers slipped 22% and load factor was recorded “within expectations” at 77%. During the period, group revenue fell 15% year on year (yoy) to US$538 million.
“We have applied for bank loans in our operating countries to shore up our liquidity,” Mr Fernandes said in an official statement on Monday (6/7).
“We have also been presented with proposals to raise capital to strengthen our equity base and/or liquidity from a number of investment bankers, lenders, [and] potential investors to help the company weather the storm caused by the COVID-19 pandemic.”
In the first three months of the year AirAsia Philippines had the highest market-share gain, followed by AirAsia Indonesia and AirAsia India. The airline group controls a 61% market share in Malaysia, its largest domestic market.
“For each of our operating markets, we have restarted operations in phases and are focusing domestically for now, before opening up to ASEAN and then the rest of Asia when border restrictions are lifted,” said AirAsia Group Airlines President Bo Lingam.
“We are aiming to increase our flight frequencies to around 50% of our pre-COVID operations, and we look forward to resuming all domestic routes in the coming weeks and months to cater to the increasing demand.” (MS)