Good News For Airasia As Air Travel Takes Off

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AirAsia has only good news in the new year with passenger load doubling in the Philippines and growing 11-fold in Indonesia.KUALA LUMPUR: AirAsia Group Bhd is recovering exceptionally well, with key operational metrics improving in December 2020 compared with September 2020.
There was a 31% increase of passengers carried by AirAsia Thailand (TAA), AirAsia Philippines (PAA) doubled the number of passengers it carried, and the number of passengers carried by AirAsia Indonesia (IAA) multiplied by a whopping 11 times.
In a statement, the group said AirAsia Malaysia closed the fourth quarter of 2020 (4Q20) with 834,934 passengers carried on a healthy 72% load factor, despite the setback in October and November due to the reimplementation of interstate travel restrictions.
It said following the easing of restrictions in December, strong pent-up demand positively translated into an immediate pick up in domestic travel.
“For the full year, 2020 was a year of resilience for all four aircraft operating companies (AOC) as each entity worked hard to overcome the ongoing challenges and together carried 23 million passengers. By December, the four AOCs recovered close to 60% of pre-Covid domestic capacity,” it said.
Post-Covid, the group expects to benefit from a leaner and optimised airline operation established in 2020, concentrating on recovering the most profitable and popular routes while exploring opportunities to gain market share.
“In December, IAA more than tripled its operating capacity compared with November to match demand recovery. Operations remained primarily domestic, running at a remarkable 93% of pre-Covid capacity in December,” the AirAsia statement said.
“The group is encouraged by the strong rebound in demand and expects IAA to fully recover to its pre-Covid domestic capacity in 1Q21,” it said.
As for PAA, the group said it carried 117,948 passengers in 4Q20 and reported a load factor of 64%.
Meanwhile, it said TAA’s performance further gained momentum in 4Q20, riding on strong domestic travel demand from the festive season and travel incentives from the government.
“TAA’s 4Q20 operations exceeded expectations as it surpassed its pre-Covid domestic capacity by 7%. In December 2020, TAA operated 116% of pre-Covid domestic capacity, as compared with 96% in September 2020, and utilised 70% of its fleet by the end of December.
“More than 2.8 million passengers were carried during the quarter, an increase of 50% quarter-on-quarter, resulting in a commendable load factor of 74%.”
AirAsia said the improvements signified a solid domestic rebound for air travel demand across the group’s key operating markets. - FMT

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