KUALA LUMPUR – AirAsia Group Bhd’s net loss widened to RM5.10 billion for the financial year ended December 31, 2020 (FY20) from RM315.81 million in the preceding year.
Revenue also fell to RM3.14 billion from RM11.86 billion previously, the low-cost carrier said in a filing with Bursa Malaysia today.
For the fourth quarter (Q4) of FY20, the group’s net loss increased to RM2.44 billion from RM384.44 million a year earlier, while revenue declined 92% to RM267.44 million from RM3.23 billion previously.
The group said the impact of the Covid-19 pandemic continued to affect its operations adversely.
“While international borders remained closed, the group will focus on resuming limited domestic operations in the areas we operate.
“Lockdowns announced in Malaysia for the months of October and November further dampened sales in Q4,” the airline said.
AirAsia said revenue for the airline business for Q4 FY20 was RM233.4 million, as capacity was reduced by 88% against the same period in 2019.
This was mainly as a result of lower capacity in Malaysia, the Philippines, and Indonesia as international borders remained closed, it explained.
AirAsia said the group would continue with its cost-containment measures, including the right-sizing of manpower and salary cuts for management, staff and directors, while efforts to preserve cash included negotiations for restructuring of payments with lessors, suppliers and partners, as well as restructuring of fuel hedging positions.
On prospects, it said even if borders remained closed, it was well-prepared to rely solely on domestic operations alone this year.
“We remain committed to further strengthen our domestic position at this juncture as we await developments with regards to international air travel.
“Going forward, we expect to see improved stability in our operations as vaccinations continue to be rolled out in phases across all key markets.
“This is coupled with better education and testing, alongside strong support for leisure travel bubbles among low-risk countries and territories, and the push for global digital health passports,” it added.
Further, AirAsia said, it had ongoing deliberations with several parties for joint-ventures and collaborations that may result in additional third-party investments in specific segments of the group’s business.
“Through these various fundraising exercises that the group is working on, AirAsia foresees it will have sufficient liquidity to sustain the business operations,” it said. – Bernama, March 29, 2021
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