AirAsia posts largest ever quarterly loss
AirAsia Group posted a net quarterly loss of RM993 million ($238 million) in the three months to June.
It is a record quarterly loss for the airline group, with revenue sinking by 96% to only RM119 million.
More than 40% of revenue came from cargo related business.
The company has been in talks over possible strategic investments and joint ventures to help prop up the business with extra funds.
"During the lockdown, we took the opportunity to restructure the group and lay the foundations for a sustainable and viable business for the future," Group CEO Tony Fernandes said.
"Although we do not foresee capacity returning to pre-Covid-19 levels in the short term, we expect demand to gradually continue to grow throughout the second half of 2020."
Fernandes expects AirAsia to be ‘profitable in the years to come.’
AirAsia has resumed flying in many of the Southeast Asia markets it serves, but at a very limited capacity on mostly domestic routes.
The airline has just resumed a key international route, linking Kuala Lumpur with Singapore.
There has been concern about AirAsia’s long term viability as a business after auditor Ernst & Young said it may be in ‘significant doubt’ because liabilities far exceeded its assets even before the pandemic.
Written by Ray Montgomery, Asia Pacific editor
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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