Air Asia Philippines lost P2.31 billion in the second quarter, a reversal of the P353 million profit reported in the same period a year ago as travel demand evaporated because of Covid-19.
Controlled by businessman and lawmaker Mikee Romero and wife Sheila, AirAsia Philippines saw revenues plunge to P129 million from a P7.51 billion due to the collapse in passenger revenues.
Passenger volume nosedived to 29,111 from 2.22 million as the airline grounded its fleet from March 20 to June 4 because of the COVID-19 outbreak.
Load factor declined by 36 percentage points to 55%.
Air Asia resumed limited domestic and international commercial flight schedules after Metro Manila reverted to the general community quarantine.
It is now flying to Cebu, Davao, Tacloban, Bacolod, Caticlan, Cagayan de Oro, Kalibo, Puerto Princesa and Iloilo.
“Reviving domestic travel is high on our priority list as an opportunity to strengthen our domestic position in all of our key operating markets. Demand is expected to build up in third quarter of 2020 and fourth quarter of 2020, supported by both business and leisure travel,” said Bo Lingam, president of AirAsia Group Berhad (Airlines).
“By fourth quarter of 2020, we expect to run at 70 to 75 percent domestic capacity for AirAsia Malaysia, 60 percent for AirAsia Philippines and 35 percent for AirAsia Indonesia,” he added.