KUALA LUMPUR: AirAsia Group Bhd's net loss narrowed to RM767.42 million in the first quarter (Q1) ended March 31, 2021 from net loss of RM803.85 million recorded in the same quarter a year ago.
The budget airline successfully reduced fixed costs by 54 per cent year-on-year (yoy), as the loss was primarily attributed to a shortfall in revenue amidst subdued travel demand due to lockdowns and travel restrictions, with international borders remaining closed.
Excluding a fuel swap loss of RM30 million, AirAsia would have reported a negative gross earnings of RM187 million.
Revenue in the same quarter plunged to RM298.22 million from RM2.31 billion.
AirAsia revenue decreased 91 per cent yoy and 12 per cent quarter-on-quarter (qoq) due to limited travel caused by the lockdown imposed in Malaysia since January 2021.
Less impacted in the quarter, non-airline revenue declined 36 per cent yoy, it said.
AirAsia president Bo Lingam said in Q1 2021, the group posted a healthy load factor of 67 per cent, contributed by active capacity management to match demand.
"This is led by AirAsia Malaysia and AirAsia Philippines with 73 per cent and 74 per cent load factor respectively during the quarter.
"All of our AOCs (air operator's certificates) experienced reduced operations in the early start of the year due to rising infection cases in our operating markets.
"However, as vaccine rollout accelerated within the Asean region, we have seen improvements in the number of passengers carried in March month-on-month, led by AirAsia Thailand with a 169 per cent increase," he said.
On outlook, AirAsia group chief executive officer Tan Sri Tony Fernandes said with vaccinations, better testing capabilities and the potential of a global digital health passports, the carrier remained optimistic of a recovery within the next two years.
"Also, based on our funding efforts and recent development of vaccination against the Covid-19 pandemic and the implementation of national vaccination programmes, our external auditor has acknowledged and provided a positive note in their FY20 audit report," he said.