SEPANG: The aviation arm of Capital A Bhd, AirAsia Aviation Group Ltd, is optimistic that the group’s revenue will reach pre-pandemic levels by the end of the year with the opening of Malaysian borders by 1.
AirAsia Aviation Group Ltd Group Chief Executive Officer Bo Lingam said the company would be able to achieve its goals if more countries relax or completely remove their travel restrictions.
“To be able to return to pre-covid income, I assume by the end of the year. Hopefully, fuel prices have also fallen by then,” he said at a media briefing yesterday.
In April, Lingam said the group’s local operations operate 42 aircraft in Malaysia.
“In Thailand, we will have 23 aircraft. We will also have eight aircraft, all of which are operated in Indonesia and the Philippines.
On March 8, Prime Minister Datuk Seri Ismail Sabri Yaakob announced that Malaysia would reopen its borders next month as it sought to revive the country’s economy, particularly the tourism industry, which was severely affected by the Covid-19 pandemic.
AirAsia Malaysia Chief Executive Officer Riad Asmat said the decision “would be a very encouraging approach for the country.
“We hope for the best in advance. I believe the seamlessness of travel happens sooner rather than later.
“There are still variables and challenges in existence, but in the next few months I think things will change for the better. Malaysia will benefit from this being one of the first movements, particularly in terms of border tensions.
Riad added that the group will increase the number of international flights regularly from 1 April. It culminates at about 25% and 26% of pre-covid levels.
“Of course, it also depends on the opening of borders in other countries. If they can do it sooner, then we can increase our numbers.
With the opening of borders, the riad said the group will try to build up its passenger load factor as soon as possible.
“We have to reach a passenger load of between 80% and 90% every day. Our goal is to fill it as much as possible, both ways.
The riad also said the airline started hiring staff. “From a Malaysian perspective, we have already started to remember our laid off staff. Set up some units, remember some.
“But it is all monitored and balanced correctly and carefully because we also do not want to overdo it,” he said.
With the further easing of travel restrictions, Capital A said in a statement yesterday that it has increased its domestic flight capacity by 156% since October 2021 when the Langkawi travel bubble was launched.
It also said flight capacity had increased by 50% for international flights since the government reopened its border limits in April on March 8, with a total of 75 aircraft and operations currently group-wide.
“This has also been supported by the opening up of other countries such as Thailand, the Philippines, Indonesia, Cambodia, Singapore and Vietnam,” it said.
Capital A narrows its net loss to RM3.12bil in fiscal year ended December 31, 2021 from RM5.11bil to 2020. Revenue shrank to RM1.73bil versus RM3.27bil previously.
For the fourth quarter ended December 31, 2021, the net loss was cut to RM884.09mil from RM2.46bil in the previous corresponding quarter, while revenue jumped to RM717.12mil compared to RM328.39mil previously.
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