KUALA LUMPUR: AirAsia Group Bhd is reducing its fleet size by about 10 per cent next year. It will let go of about 20 aircraft as the leases end in 2021.
AirAsia Group founder and chief executive officer Tan Sri Tony Fernandes, who confirmed the matter today, however, offered a positive outlook of the low-cost carrier returning to profitability in a couple of years as the group was buoyed by its expansion on routes, and diversification into food and grocery delivery, retail and restaurant venture.
"It is an about 20 aircraft (reduction) out of our 245 (in our fleet). So that's about 10 per cent.
"We're talking about 20 aircraft next year. Most of these (aircraft) have leases that are coming to an end," he told the New Straits Times Press today during AirAsia's annual visit to media houses in conjunction with the holiday season.
Fernandes said he estimated it may take another two years for the group's revenue to return to the pre-Covid-19 levels, but it saw some good things coming from its other branches of business.
"Obviously, I don't think travel will return to the 2019-level for a couple of years. We'll be a bit smaller, but if travel really comes back, there are lots of pilots and planes.
"We can grow very quickly again, but I think it's better to be conservative than aggressive."
Asked his estimation of percentage of profit for next year, Fernandes said: "50-50 (for AirAsia). That's pretty much a non-answer, but I think we have a chance."
On Dec 2, FlightGlobal.com reported that the AirAsia Group was reducing its fleet size by 23 aircraft next year amid an ongoing investment review conducted by the low-cost carrier group.
The report quoted an unnamed source who said the group planned a reduction in its fleet count to match its expected recovery in the post-Covid-19 pandemic period.