AirAsia Group has reported a net loss of 953 million ringgit (US$223 million) for the three months to March 31, 2020, slumping into the red from a net profit of 102 million ringgit a year earlier. The company said the result was due to a 15% decline in revenue from COVID-19 that smashed travel demand, higher maintenance costs, fuel hedging losses and fair value losses from derivatives.Read More » "Despite kick-starting the year with a strong performance in January, the uncertainty of the outbreak as well as increasing travel restrictions and border controls to contain the virus led to weaker air travel demand in February and March," an AirAsia Group statement said yesterday.
The LCC group said it posted "breakeven" earnings before interest, tax, depreciation and amortisation (EBITDA) in the first quarter of calendar 2020, compared with EBITDA of 565 million ringgit in the same months a year ago. A loss at the EBITDA level at the company's Malaysia and Indonesia affiliates was "cushioned" by positive EBITDA at its Philippines operations. The group said it cut capacity, or available seat kilometres (ASK), by 19% during the quarter.
AirAsia Group CEO, Tony Fernandes, said the LCC group had been encouraged by a strong rebound since it resumed operations at its various affiliates across the region in late April. “We foresee this will continue in the coming months, Fernandes said in a statement. The competition was “pricing rationally” which “boded well for us to compete in the post-COVID-19 world”, he added.
New Zealand Minister for Housing, Dr Megan Woods, said today the government had requested national carrier, Air New Zealand (AirNZ), to temporarily limit capacity on inbound international flights amid "rapid growth in the number of New Zealanders coming home as the COVID-19 pandemic worsens". The short-term measure would allow the government to increase quarantine places to match forecast demand in coming weeks, Dr Woods said in a statement. About 5,697 people are in compulsory 14-day quarantine at 28 sites around the country. The government was talking to other airlines about managing flows.
AirNZ said today it had put new bookings on international flights on hold for the next three weeks. It was evaluating "aligning daily arrivals with the capacity available at managed isolation facilities", which could mean some customers would need to be moved to another flight. "We accept this is a necessary short-term measure given the limited capacity in quarantine facilities. We are keen to do what we can to help New Zealand's continued success in its fight against COVID-19," the airline’s chief commercial and customer officer, Cam Wallace, said in a statement. All affected passengers would be contacted.
Japan Airlines (JAL) announced today it planned to add a second weekly nonstop flight between Tokyo Narita and Dalian from July 9. The additional service would operate on Saturdays and be timed to allow connections to North America, JAL said in a statement. The current weekly service on the route operates on Thursdays. The oneworld alliance member reinstated nonstop flights from Tokyo Narita to Singapore on July 3, with three flights a week planned.
Indian carrier Vistara, a joint venture between Singapore Airlines (SIA) and Tata Sons, said yesterday a survey of 6,000 adult customers found 65% expected to take their next flight within six months. The survey, which Vistara conducted from June 8 to June 14, revealed 35% of respondents indicated business was the biggest reason for them to travel while 25% said they wanted to visit friends and relatives. Vistara chief commercial officer, Vinod Kannan, expects demand for air travel to soon return but in a graduated manner. "This finding gives new energy to our plans of growth and expansion in the months ahead," Kannan said in a statement.
Thai Airways International (THAI) acting president, Chansin Treenuchagron, said the airline had appointed Baker & McKenzie Co. as its legal advisor, EY Corporate Advisory Services as its accounting advisor and Finansa Securities as its financial advisor for the drafting of a rehabilitation plan due to be submitted to Thailand's Central Bankruptcy Court by August 17. The acting president told local media late last week the rehabilitation plan would be successful if the board, management, creditors and debtors cooperated to implement the short, medium and long-term measures necessary to navigate THAI out of its financial troubles.
