AirAsia reports smaller Q2 loss, lockdown slowed sales

Malaysia’s flagship budget carrier AirAsia Group Bhd AIRA.KL posted a smaller loss in the second quarter amid a jump in revenue, even as an enhanced lockdown dampened sales during an ongoing slump in travel, a bourse filing showed on Wednesday.

Revenue was 160 per cent higher at 370 million ringgit, boosted by cargo revenues. Under its digital arm, revenue from its logistics business tripled while the fintech unit revenue was 56 per cent higher.

Net loss for April-June was 41.6 per cent lower at 580 million ringgit ($139.66 million), compared with a loss of 992 million ringgit a year ago when the airline hibernated its fleet at the start of the coronavirus pandemic.

Passengers carried for the quarter surged 272 per cent to 758,746 while load factor - which measures how full a plane is - rose nine percentage points to 68 per cent.

AirAsia said it continued with cost containment measures, including cutting headcount and salaries while managing its capacity to match demand.

The group is in negotiations with lessors to restructure lease terms, it said.

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