AirAsia’s loss deepens on lower revenue and forex moves

24-Nov-2021 Intellasia | FreeMalaysiaToday | 5:02 AM Print This Post

Enhanced lockdowns and travel restrictions in Malaysia and Indonesia saw AirAsia Group Bhd reporting a wider quarterly net loss.

Pandemic restrictions on travel in these two operating markets weighed on revenue, while it logged a foreign exchange loss.

Its Philippines unit, however, had a strong quarter.

The group said in bourse filings that it recorded a net loss of RM887 million for the July-September quarter, 4.1 percent more compared with a loss of RM851.8 million a year earlier.

Revenue for the period dropped 37 percent to RM295.9 million. However, its logistics business Teleport tripled its revenue, contributing 53 percent to the group total revenue.

AirAsia’s income statement filed to the stock exchange showed that a foreign exchange loss of RM216.9 million further dragged its financial performance during the period.

The group said investments in technology, talent and network for its digital businesses and in Teleport also added to its losses.

The airline carried 351,971 passengers in the third quarter, 82 percent less than the 1.9 million a year ago, while the load factor which measures how full planes are was little changed at 67%.

AirAsia said it has seen “an upward trajectory of sales with the gradual recovery of travel” since domestic travel reopened in the region.

“We expect the current sales momentum and reduced cash burn trend to continue into (the following quarter) as the group is well positioned to serve the pent-up leisure travel demand,” it said.

It has also completed two rounds of renegotiations with lessors for lower lease rental in the future and expects to complete the renegotiations with all lessors by the end of the year.

AirAsia maintained that it will have sufficient liquidity to sustain the business operations throughout 2021 and 2022.

Earlier this month, the airline won shareholder approval for a rights issue to raise RM1 billion.


Category: Malaysia

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