AirAsia’s 3Q hit by sustained travel restrictions


AIRASIA Group Bhd recorded a net loss of RM887 million in the third quarter ended Sept 30, 2021 (3Q21), compared to a net loss of RM851.78 million in 3Q20 as a result of the flight restrictions in Malaysia and Indonesia which resulted in decrease in passengers carried by 91% and 79%, respectively.

Revenue for the quarter was RM295.89 million against RM468.94 million in 3Q20, the low-cost carrier stated in a bourse filing yesterday.

Net loss per share came to 22.80 sen versus 25.50 sen loss in 3Q20.

Revenue for the airline business for 3Q21 was RM118 million, decreased by 70% compared to 3Q20. However, the lower airline revenue was cushioned by Teleport’s revenue which had tripled year-on-year.

Teleport revenue contributed 53% of the total 3Q21 revenue, the carrier stated. “The group scaled up its business in the SuperApp and Teleport resulting in a widening of losses as a result of investment in technology, talent and network,” it said.

As part of the group’s transformation journey to be more than an aviation group, AirAsia is nearing completion of its restructuring of the distinct business pillars within the group with independent management.

“Other than the aviation industry, we are seeing traction in our aircraft engineering maintenance business under Asia Digital Engineering, cargo and last mile deliveries under Teleport, AirAsia SuperApp and BigPay.

“While still in its first year of operations, our aircraft engineering maintenance business is able to provide faster turnaround time for maintenance check for aircraft which is much needed as travel picks up and airlines are reactivating aircraft that were in hibernation,” it added.

AirAsia SuperApp has expanded its offerings beyond the travel segment, with AirAsia Food expanding its offerings to Singapore, Johor Baru, Melaka, Kota Kinabalu, Penang and Bangkok, and other offerings such as AirAsia Rides and travel mall.

BigPay has also applied for a digital banking licence in Malaysia with a consortium of strategic partners.

Teleport is focused on building out a reliable cargo network and a 24-hour delivery end-to-end infrastructure with the conversion of two A320 passenger aircraft as cargo only planes and leased one freighter aircraft.

Teleport is also working on leasing another two freighter aircrafts targeted to be made available in 3Q22.

Meanwhile, AirAsia’s shareholders have approved the proposed redeemable convertible unsecured Islamic debt securities which is expected to be completed by the end of the year.

“We have also completed two batches of renegotiation of lease terms with our lessors which will see a lower lease rental per aircrafts in the future and we expect to complete the renegotiations with all lessors by end of the year.

“Through these various fundraising exercises and cost containment measures that the group is working on, the board foresees it will have sufficient liquidity to sustain the business operations throughout 2021 and 2022,” it explained.

AirAsia’s share price closed two sen or 1.90% lower at RM1.03, giving it a market capitalisation of RM4.01 billion.