by BERNAMA / pic by BERNAMA
AirAsia X Bhd posted a net loss of RM549.7 million for the first quarter ended March 31, 2020 versus a net profit of RM43.33 million in the same quarter last year.
Revenue fell 21% to RM924.09 million as seat capacity and the total number of passengers carried decreased, the company said in a filing with Bursa Malaysia.
Group chief executive officer Nadda Buranasiri said its operating environment was aggravated by the COVID-19 outbreak in the beginning of this year.
“AirAsia X Malaysia scaled down flight frequency to all markets in several phases beginning with China in February,” he said in a statement.
In mitigating the adverse effects of COVID-19, it has had to undertake the temporary hibernation of fleet under AirAsia X Group, as AirAsia X Malaysia suspended all scheduled operations from March 28 onwards, while AirAsia X Thailand’s scheduled operations have been suspended from March 16.
However, AirAsia X has kept a handful of aircraft operational in providing assistance to the relevant authorities due to increase in demand in the global supply chain for essential goods and to facilitate the repatriation of travellers.
On outlook, the company remains confident that demand will pick up towards the end of this year.
However, it will remain in hibernation mode as the prospects of resuming scheduled flights is tied to the recovery in international air travel demand in the coming months as and when border controls and travel restrictions ease.
As for this year, it is hedging Brent crude oil price at US$61.40.