Malaysia’s AirAsia Reports Lower Second Quarter Loss, Lockdown Slows Sales

KUALA LUMPUR, Sept. 8 (Reuters) – Malaysia’s flagship low-cost carrier AirAsia Group Bhd (AIRA.KL) posted a smaller loss in the second quarter amid rising revenues even as a tightened foreclosure has held back sales amid a continued decline in travel, a stock market filing showed on Wednesday.

Revenue increased 160% to 370 million ringgit, boosted by freight revenue. Under its digital arm, the turnover of its logistics activity tripled while the turnover of the fintech unit was 56% higher.

The net loss for April-June was 41.6% lower at 580 million ringgit ($ 139.66 million), compared to a loss of 992 million ringgit a year ago when the airline hibernated its fleet in start of the coronavirus pandemic.

Passengers carried for the quarter jumped 272% to 758,746 as load factor – which measures how full an aircraft is – increased nine percentage points to 68%.

AirAsia said it has continued with cost containment measures, including downsizing staff and salaries while managing its ability to meet demand.

The group is in negotiations with lessors to restructure the terms of the leases, he said.

“By the end of the third quarter of 2021, we will have completed two lease restructuring packages and expect to complete the full year by the end of 2021,” Group CEO Tony Fernandes said in a statement. separate.

Fernandes said AirAsia has sufficient liquidity for the remainder of the year and through 2022. The group plans to raise up to RM1 billion through a rights issue by the end. of this year.

The group expects all of its airline entities – Malaysia, Thailand and Indonesia – to see a gradual resumption of domestic operations in the fourth quarter, following the easing of travel restrictions in line with rising vaccination rates.

($ 1 = 41,530 ringgits)

Reporting by Liz Lee; Editing by Bernadette Baum

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