Malaysia’s AirAsia reports significant losses and foreign exchange losses in the third quarter as earnings decline


Malaysian low-cost carrier AirAsia Group Bhd reported a net loss of MYR 851.8 million ($ 203 million) in the third quarter, which ended on September 30, due to lack of revenue and foreign exchange losses. He said it had expanded to MYR 878 million ($ 212 million). ..

Revenues during this period were down 37% to RM295.9 million ($ 70.47 million) due to a decline in travel demand during the Malaysian blockade that began in January 2021.

However, the digital business reported stronger profits. AirAsia said its logistics business teleports tripled compared to the same period last year, contributing 53% to the Group’s total revenue.

AirAsia said in a filing on the stock exchange on November 22 that a foreign exchange loss of RM216.9 million ($ 51.66 million) had an impact on its financial results for the quarter. Last year’s period.

The airline had 351,971 passengers in the third quarter, down 82% from 1.9 million in the previous year, but the load factor remains at 67%.

“Growth in this quarter was driven by AirAsia Philippines, which attracted 167% year-on-year passengers. [year-on-year] We pushed the load factor up to 77%. “

Operating expenses were reduced by 65% ​​year-on-year in the third quarter, fixed costs were reduced by 23% year-on-year, of which airline labor costs were reduced by 38%.

AirAsia said it aims to fly 60% of pre-COVID domestic flights by December 2021 as travel demand gradually recovers after domestic travel resumes in the region. “Continuous improvement” was mentioned.

“With the exception of Malaysia, recent positive developments in air travel across Thailand, Indonesia and the Philippines have been sold for immediate and short-term travel, in line with the expectations of stronger bookings for voluntary travel by Pent. Contributed to a significant increase in the number of seats being seated-increased demand. “

The airline has also completed two batches of lease restructuring. This will help reduce lease rentals per aircraft in the future and will complete the full exercise by the end of the year.

Group CEO Tony Fernandez said in a statement that AirAsia received shareholder approval for a rights issue of up to RM1 billion ($ 238 million) at an extraordinary meeting on November 11th, at the end of the year. He said he would complete the exercise by.

“We will continue to evaluate further funding, potential monetization, and other corporate exercises, but at this point we expect sufficient liquidity by the end of the year and throughout 2022,” Fernandes said. I am.

Aldograph Redley