The Philippine unit of Southeast Asia’s largest budget airline said its net loss rose by 888 percent in the third quarter of the year due to the impact of global pandemic.
AirAsia Inc., the operator Philippines AirAsia posted a net loss of P2.32 billion in the July to September period, higher from P235 million net loss in the same period last year.
The airline’s revenue amounted to P370 million in the third quarter, down by 94 percent from P6.22 billion in the same period last year.
Philippines AIrAsia carried 67,760 passenger during the period, lower by 97 percent from 2.10 million passengers last year.
Its load factor dropped by 30 percentage points to 56 percent in the third quarter from last year’s 86 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,” Bo Lingam, president (Airlines) of AirAsia Group Berhad.
“ For fourth quarter of 2020, 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 added.
Tony Fernandes, chief executive of AirAsia Group Berhad forsees sufficient liquidity in 2021 for the company with the expectation of upward growth trajectory in air travel demand amid the further formation 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 added.