AirAsia PH losses balloon to P2.3B in Q3

No-frills airline AirAsia Philippines saw its net loss soar to P2.32 billion in the third quarter from only P235 million as it took a hit from the plunge in air traffic caused by the pandemic.

Revenues sank by 94% to P370 million as the number of passengers transported fell to 67,760 from 2.1 million passengers.

Load factor declined by 30 percentage points to 56 percent.

“Our top priority at this point is to gradually increase our operations in phases, starting with strengthening our domestic foothold across our key markets as the borders remain closed,” said Bo Lingam, president of AirAsia Group Berhad.

“ For fourth quarter, we expect to operate up to 31 percent of pre-covid domestic capacity for AirAsia Malaysia, 47 percent for AirAsia Indonesia and 13% for AirAsia Philippines,” he said.

Tony Fernandes, CEO of AirAsia Group Berhad, expects sufficient liquidity in 2021 with the expected recovery of air travel demand amid the establishment of
travel bubbles and green lanes.

“As we speak, a number of Covid-19 vaccines are close to final stages of testing. We have high hopes that with the availability and accessibility of effective vaccines, AirAsia will soon paint the skies red again. These external factors are positively contributing to expedite the recovery in air travel, which we expect to bounce back by mid-2021,” he said.

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