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AirAsia Faces Loss Due To COVID-19 Pandemic

AirAsia, Southeast Asia’s biggest low-cost airline, fell by more than 10% on Wednesday

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Priya sharma
Priya is an avid food blogger. She is a communications professional, well acquainted with the world of PR. She passionately writes about Business, Lifestyle, and Technology.

INDIA. NewDelhi. Due to the COVID-19 pandemic, Malaysia-based budget carrier AirAsia Group Bhd anticipates its 2020 capability to be just 45% to last year’s 60%, and to fill 70-75% of the seats this year contrasting the usual 85%.

According to Refinitiv Eikon data, the airline reported on Tuesday its major Quarter 1 loss since being listed on the Malaysian Bourse in November 2004. The airline’s website contains the forecast.

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The airline hopes travel demand to bounce back to a certain level in 2021, with capacity reaching 85% of its 2019 extent and a standard of the proportion of seats packed, returning to 85 percent in 2021, as per the presentation.

The COVID-19 catastrophe has resulted in boundary closures in most of AirAsia’s pivotal markets including Malaysia, Indonesia, Thailand, the Phillippines, China, and India, occurring in a 22% diminution in the total number of passengers carried in the first quarter to 9.85 million.

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AirAsia stated a loss of 803.3 million ringgit ($187.91 million) for the quarter ended March, from 96.1 million ringgit net profit in the year-ago period. Profits knockdown to 15% to 2.31 billion ringgit.

The Airline last month said they had received proposals from investment bankers, lenders, and potential investors to help and deal with the pandemic.

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Chief Executive Tony Fernandes said in a statement “The company had required payment deferrals from suppliers and lenders to ensure adequate working capital and had modernised a major segment of its fuel hedges”

AirAsia has also applied for bank loans in countries it operates in to shore up liquidity, the statement said.

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