26 September 2020, Saturday | 10:04am

Covid-19 drags down AirAsia Group to record net loss in Q2

2020-08-26

KUALA LUMPUR, Aug 25 — AirAsia Group Bhd recorded a net loss of RM992.89 million in the second quarter ended June 30 2020 (2Q20), against a net profit of RM17.34 million in the same quarter last year.

At the height of the Covid-19 pandemic, when many countries announced lockdowns and border restrictions, the low-cost airline group’s revenue plunged by 96 per cent to RM118.96 million from RM2.92 billion previously.

In a filing to Bursa Malaysia, the group said 42 per cent of its revenue was contributed by cargo and logistics operations.

“Group expenditure declined as the group hibernated its fleet at the end of the first quarter and gradually resumed operations at end of May-early June as domestic travel restrictions eased.

“The group implemented cost-containment measures such as right-sizing of manpower; salary cuts for management, staff and directors; negotiation of deferrals with lessors, suppliers and partners; and restructuring of fuel hedging positions,” the airline said.

As for cash flow, the group recorded a net outflow of RM1.67 billion during 2Q20 as the current Covid-19 pandemic contributed to the lower demand for flights.

During the quarter under review, revenue for the airline business was RM68.0 million as capacity reduced by 98 per cent as compared with the second quarter of 2019 (2Q19).

A total of 204,082 passengers were carried during 2Q20 compared with 12.84 million passengers flown in 2Q19.

Malaysia and the Philippines announced hibernation of its fleet starting March 28 and March 20, 2020, respectively, whilst Indonesia significantly reduced its domestic and international flights. — Bernama

Source: MALAYMAIL

 

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