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KUALA LUMPUR (Dec 10): AirAsia Group Bhd Group Chief Executive Officer (CEO) Tan Sri Tony Fernandes has described himself as a “front-line man” as the budget airline positions itself for growth of revenue anticipating air travel demand, which has been hit by restricted-movement policies driven by Covid-19, will return in force.
CNBC TV18 quoted Fernandes as saying at a CAPA – Center for Aviation live event yesterday that AirAsia’s capital raising exercise is expected to take place over the next two to three months.
“I am a front-line man. Domestic is 50% of our business, he is doing well.
“International routes are expected to open in the next six months,” Fernandes said.
CNBC TV18 reported that Fernandes, however, added that AirAsia may have to return some aircraft in the short term, as demand for air travel will be weak at least through 2021, but the airline is hopeful for a strong recovery in 2022 and 2023. .
“The airlines don’t accept that many deliveries or are involved in [a] sale and leaseback … flying is not going to come back in 2021, but definitely in 2022-2023, “he said.
On November 24, AirAsia reported that its net loss increased to RM 851.78 million for the third quarter ended September 30, 2020 (3QFY20) from a net loss of RM 51.44 million the previous year.
The group said in a filing with Bursa Malaysia that its revenue fell to RM442.91 million from RM3.07 billion.
Quarter-over-quarter (quarterly), AirAsia’s after-tax loss in 3QFY20 fell to RM1.08 billion, from an after-tax loss of RM1.16 billion for 2QFY20, as the group increased its operations after of the relaxation of travel restrictions, according to the company.
In Bursa today, AirAsia’s share price was unchanged at 87.5 sen at the time of writing, with a market capitalization of approximately RM2.92 billion.
Some 19 million shares were traded.
Read also:
AirAsia Group In Discussion With Tata On Future Of Indian Joint Venture, Says Fernandes
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