AirAsia Loses IDR 3.4 Trillion Due To The COVID-19 Pandemic

Pesawat Air Asia. (Irfan Meidianto / VOI)

JAKARTA - The AirAsia Bhd Group posted a net loss of RM992.89 million or around Rp3.4 trillion in the second quarter ended 30 June 2020, compared to a net profit of RM17.34 million in the same quarter of the previous year.

In its statement, the airline stated that at the height of the COVID-19 pandemic when many countries announced lockdowns and border restrictions, the low-cost airline group's revenue fell 96 percent to RM118.96 million or Rp.414 billion more than the previous RM2.92 billion.

The AirAsia Group said 42 percent of its revenue was contributed by cargo and logistics operations. Spending declined as the airline hibernated its fleet at the end of the first quarter and gradually resumed operations in late May to early June as domestic travel restrictions eased.

"The Group is implementing cost control measures such as determining the proper size of the workforce, cutting wages for management, staff and directors, delaying negotiations with suppliers and partners and restructuring fuel positions," he said as quoted by Antara, Wednesday, August 26.

As for cash flow, the group recorded a net outflow of RM1.67 billion during the second quarter of 2020 as the current COVID-19 pandemic contributed to a decrease in flight demand.

During the quarter under review, revenue for the airline business was RM68.0 million as capacity was reduced by 98 percent compared to the second quarter of 2019.

A total of 204,082 passengers were transported during the second quarter of 2020 compared to 12.84 million passengers flown in the second quarter of 2019.

Malaysia and the Philippines announced their fleet hibernation from 28 March and 20 March 2020, respectively, while Indonesia significantly reduced its domestic and international flights.

Some time ago AirAsia also opened charter flights for tourists or medical patients from Medan-Penang but was later closed again due to protests from the Chief Minister of Penang.