AirAsia 4Q consolidated AOC records strong 80% load factor

KUALA LUMPUR: AirAsia Group Bhd’s consolidated air operator’s certificate (AOCs), recorded the highest quarterly load factor and capacity at 80% and 3.4 million respectively in fourth quarter of 2021 (4Q21) since the beginning of the Covid-19 pandemic.

The budget carrier said passengers carried increased 103% to 2.7 million year-on-year (YoY) in 4Q21 which surpassed the capacity increase of 70%, leading to a 13 percentage points (ppts) improvement in load factor to 80%.

Available Seat Kilometres (ASK) grew by 72% YoY, primarily attributable to strong demand from the introduction of quarantine free travel bubbles for Malaysia and the easing of travel restrictions in 4Q2021.

“In FY2021, the load factor for the consolidated AOCs remained healthy at 74% with strategies implemented to manage the multiple disruptive lockdowns imposed by respective governments,” it said in a statement.

The carrier said the improved monthly performance of passengers carried and additional capacity across the group indicated a V-shaped resumption trend in air travel demand throughout 2021.

Additionally, the group is expecting to see a surge in demand following the recent announcements that the Thai government is resuming its quarantine-free travel scheme from Feb 1, 2022 and the Malaysia government resumed the Vaccinated Travel Lane (VTL) between Malaysia and Singapore, effective Jan 24, 2022.

“AirAsia Malaysia passengers carried and capacity has increased by 164% and 139% respectively as compared to the same quarter in previous year off the back of rising demand after the reopening of state borders announced by the Government of Malaysia.

Load factor increased by 7ppts YoY and 19ppts QoQ to 80% in conjunction with the year-end festive season and increased frequencies on high demand routes including between Kuala Lumpur and Langkawi, followed by the Kuala Lumpur to Kota Kinabalu route in November and December 2021.

“It is the company's expectation that the uptrend in demand for interstate travel will continue after the government allows fully vaccinated residents to cross state lines,” it said.

AirAsia Indonesia posted a commendable load factor of 87% in December 2021, 81% for the quarter which grew 22ppts YoY.

AirAsia Philippines continued to outperform in 4Q2021 with seats sold in 4Q21 doubling from 3Q2021.

For 4Q21, AirAsia Thailand operated more domestic capacity than in the previous quarter, on the back of robust demand.

AirAsia Thailand carried 1.15 million passengers. Load factor rose to 78% in December 2021.

For the full year, AirAsia Thailand carried 2.93 million passengers, declining by 69% YoY, in line with the deduction of ASK and capacity.

In FY2021, load factor was reported at 68% with a total fleet of 60 aircraft.