Business

AirAsia passenger numbers soar across key markets

Strong pent-up demand translates into immediate pick-up in domestic travel after restrictions eased in Dec

Updated 5 years ago · Published on 09 Feb 2021 6:30PM

AirAsia passenger numbers soar across key markets
AirAsia Malaysia closed Q4 with 834,934 passengers carried on a healthy 72% load factor, despite the setback in October and November, given the reimplementation of interstate travel restrictions. – Airbus pic, February 9, 2021

KUALA LUMPUR – AirAsia Group Bhd is navigating its recovery phase exceptionally well as key operational metrics improved in December last year compared with September.

This is shown by a 31% increase, notably, in passengers carried by AirAsia Thailand (TAA), doubling of passengers carried by AirAsia Philippines (PAA), and number of passengers carried by AirAsia Indonesia (IAA), which was up a whopping 11-fold. 

In a statement, the group said AirAsia Malaysia (MAA) closed the fourth quarter (Q4) with 834,934 passengers carried on a healthy 72% load factor, despite the setback in October and November, given the reimplementation of interstate travel restrictions.

It said following the easing of restrictions in December, strong pent-up demand positively translated into an immediate pick-up in domestic travel.

“For the full year, 2020 was a year of resilience for all four AOCs as each entity worked hard to overcome the ongoing challenges and together carried 23 million passengers. By December, the four AOCs recovered close to 60% of pre-Covid domestic capacity,” it said. 

Post-Covid, the group expects to benefit from a leaner and optimised airline operation established in 2020, concentrating on recovering the most profitable and popular routes while exploring opportunities to gain market share.

According to AirAsia, IAA posted a strong rebound in Q4 2020 with the number of passengers carried more than quintupled quarter-on-quarter (QoQ) to 389,283 passengers, while load factor improved to 59%, up 10 percentage points (ppts) from Q3 2020 as more flights resumed and travel restrictions eased.

“In December, IAA more than tripled its operating capacity compared to November to match demand recovery. Operations remained primarily domestic, running at a remarkable 93% of pre-Covid capacity in December.

“The group is encouraged by the strong rebound in demand and expects IAA to fully recover to its pre-Covid domestic capacity in Q1 2021,” it said.

As for PAA , the group said it carried 117,948 passengers in Q4 2020 and reported a load factor of 64%.

“On a month-to-month basis, PAA’s number of passengers carried doubled while domestic operating capacity increased by five ppts to 13% in December as compared with September.”

Meanwhile, it said TAA’s performance further gained momentum in Q4 2020, riding on strong domestic travel demand from the festive season and travel incentives from the government.

“TAA’s Q4 2020 operations exceeded expectations as it surpassed its pre-Covid domestic capacity by 7%. In December 2020, TAA operated 116% of pre-Covid domestic capacity, as compared with 96% in September 2020, and utilised 70% of its fleet by the end of December.

“More than 2.8 million passengers were carried during the quarter, an increase of 50% QoQ, resulting in a commendable load factor of 74%.”

AirAsia said the improvements signified a solid domestic rebound for air travel demand across the group’s key operating markets. – Bernama, February 9, 2021

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