AirAsia net loss narrows to RM384m in 4Q

By FARA AISYAH / Pic By MUHD AMIN NAHARUL

LOW-COST carrier Airasia Group Bhd posted a net loss of RM384.48 million in the fourth quarter ended Dec 31, 2019 (4Q19), impacted by recognised losses of RM135 million from injection of investment into AirAsia India.

In an exchange filing yesterday, the group’s loss per share in 4Q19 slightly improved to 11.50 sen compared to 11.80 sen in the same quarter last year as quarterly revenue increased 19.15% yearon- year (YoY) to RM3.36 billion.

For the financial year 2019 (FY19), AirAsia posted a RM303.72 million net loss compared to a RM1.97 billion net profit in the previous year, impacted by the sales and leaseback aircraft which was completed in 2018 and further completion of sales and leaseback aircraft in 2019.

Yearly revenue climbed 17.01% YoY to RM12.45 billion as capacity grew 16% with the highest contributor of growth coming from Philippines AirAsia Inc at 20% growth in capacity.

PT Indonesia AirAsia reported a 49% growth in capacity, including the aircraft transferred from Indonesia AirAsia X in 4Q18.

The group’s average fare and revenue per available seat kilometre (RASK) also increased by 3% and 5% respectively, with Philippines AirAsia reporting a 3% growth in RASK, while Indonesia AirAsia recorded a 13% jump in RASK.

AirAsia said due to health reasons and travel restrictions put in place by many countries as a result of the coronavirus outbreak, the demand for airline travel has seen a considerable decline.

“We are not spared of the effects of Covid-19. We are taking positive actions to face this challenge by managing capacity and costs,” AirAsia noted.

The group looks forward to the bounce after Covid-19 when demand for airline travel should return, but warned it may not achieve internal projections for the year.

The digital business of the group continues to gain traction.

Meanwhile, AirAsia X Bhd net loss in 4Q19 widened to RM95.81 million from RM88.05 million a year ago due to higher deferred taxation.

Its quarterly revenue grew 4.35% YoY to RM1.2 billion. For FY19, AirAsia X posted a net loss of RM489.48 million against a net loss of RM301.38 million in FY18.

Revenue for the year declined 3.94% YoY to RM4.39 billion.