PH unit 'star performer' of AirAsia Group; turns to profitability
Aviation Updates Philippines – Philippines AirAsia, the local arm of the multinational company AirAsia Berhad, has reported a P1.87 billion net profit for the fiscal year 2019 which ended on December 31, 2019.
The Philippine-unit of the AirAsia Group was tagged as the 'star performer' as it turned to profitability after a 153 percent growth reversed the P3.51 billion losses from the year 2018. Philippines AirAsia boasted a 31 percent increase in profits as it earned P27.4 billion last year.
For the year 2019 alone, Philippines AirAsia flew 8,553,305 passengers which is up by 25 percent from only 6,866,862 in 2018. The airline also heavily increased its capacity by 20 percent to 9,720,720 from 8,079,480. The increase in passenger volume also culminated with a three-point growth in load factor to 88 percent for 2019.
Compared to only 22 aircraft during the end of the year 2018, the local carrier ended 2019 with 24 aircraft. The AirAsia Group has only been gradually increasing its fleet size across all countries. However, the group expects to receive 11 aircraft in 2020, two of which will be funneled to its Philippine unit.
For the Philippine market, AirAsia said that its market share went up by four points to 23 percent in total. Meanwhile, Cebu Pacific's market share went down by four points while Philippine Airlines increased its share by one point.
Philippines AirAsia's average fare increased to P2,591 from P2,481 between 2018 and 2019. The airline operated 54,004 flights in 2019 from only 44,886 flights in 2018. The expansion of flights also resulted in an increase in fuel consumption from 1,642,458 barrels to 2,014,287 barrels last year.
Generally, the AirAsia Group sees the results of the fiscal year 2019 positively.
To counter the impact of the Coronavirus Disease 2019 (COVID-19) to the business, AirAsia developed a multipronged approach for 2020. The airline plans to push for a more aggressive marketing campaign, to conserve cash and implement hiring freeze, and to launch more inter-Asean and domestic flights.
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| NARROWING LOSSES. Philippines AirAsia has reversed a reported net loss in 2018. Photo from AirAsia. |
For the year 2019 alone, Philippines AirAsia flew 8,553,305 passengers which is up by 25 percent from only 6,866,862 in 2018. The airline also heavily increased its capacity by 20 percent to 9,720,720 from 8,079,480. The increase in passenger volume also culminated with a three-point growth in load factor to 88 percent for 2019.
Compared to only 22 aircraft during the end of the year 2018, the local carrier ended 2019 with 24 aircraft. The AirAsia Group has only been gradually increasing its fleet size across all countries. However, the group expects to receive 11 aircraft in 2020, two of which will be funneled to its Philippine unit.
For the Philippine market, AirAsia said that its market share went up by four points to 23 percent in total. Meanwhile, Cebu Pacific's market share went down by four points while Philippine Airlines increased its share by one point.
Philippines AirAsia's average fare increased to P2,591 from P2,481 between 2018 and 2019. The airline operated 54,004 flights in 2019 from only 44,886 flights in 2018. The expansion of flights also resulted in an increase in fuel consumption from 1,642,458 barrels to 2,014,287 barrels last year.
Generally, the AirAsia Group sees the results of the fiscal year 2019 positively.
To counter the impact of the Coronavirus Disease 2019 (COVID-19) to the business, AirAsia developed a multipronged approach for 2020. The airline plans to push for a more aggressive marketing campaign, to conserve cash and implement hiring freeze, and to launch more inter-Asean and domestic flights.
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