AirAsia revenue rises in Q3


AirAsia Group CEO Tan Sri Tony Fernandes has projected stronger quarters ahead with the further easing of travel restrictions worldwide.

PETALING JAYA: AirAsia Group Bhd has posted a revenue of RM443mil for its third quarter ended Sept 30, representing a 272% increase compared to the preceding quarter but a decline of 86% year-on-year (y-o-y).

The airline segment revenue decreased 87% y-o-y but grew five times compared to the preceding quarter, following the gradual increase in capacity in line with demand as countries began to ease lockdowns and travel restrictions.

AirAsia’s net loss for the quarter widened to RM851.78mil compared to the net loss of RM51.44mil reported during the same quarter last year. This brought its net loss for the first nine months of the financial year ending Dec 31,2020 to RM2.66bil.

In a statement yesterday, it said the loss was attributed to a shortfall in revenue amidst subdued travel demand as international borders remained closed, despite a reduction in fixed costs by 50% y-o-y.

About RM663mil of the losses was related to the depreciation of right-of-use assets and lease interest costs. In addition, the group was impacted by a fuel hedging loss of RM281mil and a one-off impairment of receivables amounting to RM444mil, which was offset by a gain on disposal of RM394mil.

AirAsia Group CEO Tan Sri Tony Fernandes (pic above) has projected stronger quarters ahead with the further easing of travel restrictions worldwide.

“Fuel swap losses next year are expected to be minimal, as most of our fuel hedges have been restructured, ” he said.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

AirAsia , revenue , Tony Fernandes , stronger quarters ,

   

Did you find this article insightful?

Yes
No

83% readers found this article insightful

Next In Business News

US says Vietnam's currency actions 'unreasonable' but holds off on tariffs
Top Glove reports Covid-19 outbreak at four factories
AmBank provides 6-month moratorium for flood victims
Principal Asset launches Next-G connectivity fund
CPO futures to trend lower on profit taking next week
WhatsApp to delay launch of update business features
US National Rifle Association files for bankruptcy
Oil drops over 2% on China lockdowns, U.S. stimulus concerns
Dollar finishes week stronger as US data hurts risk appetite
GLOBAL MARKETS-Data, lockdowns weigh on stocks

Stories You'll Enjoy