AirAsia Group reports sharp drop in revenue for FY2020

Aviation Updates Philippines – After a rough 2020 and the continuation of the COVID-19 pandemic, the AirAsia Group (AirAsia Berhad) posted sharp drops in revenue during the 4th quarter 2020 and the full year. 

Image: AirAsia A320 (Credit: AirAsia Group)

In a statement, the budget airline group reported a 74% drop in revenue during FY2020 compared to the previous year. Its unaudited financials show a revenue of RM3.1 billion (~USD $750 million) as the group operated at 29% capacity compared to 2019.

For the 4th quarter of 2020, the group posted a revenue of RM267 million (~USD $64.3 million) – a 40% decline compared to the previous quarter and a 92% compared to the same period the previous year. The losses were attributed to partial lockdowns in Malaysia during the months of October and November.

Along with the continued air travel restrictions affecting its subsidiaries, the AirAsia group reported its bankruptcy costs for AirAsia Japan to amount to around RM20 million (~USD $4.82 million).

Based in Sepang, Malaysia (near Kuala Lumpur), the group includes its units in Malaysia, Indonesia, the Philippines along with its digital subsidiaries.

While posting large losses, the AirAsia Group reported operational recoveries during the 4th quarter despite the ongoing travel restrictions saying: “The Consolidated Group’s operational recovery in 4Q2020 performed exceptionally well amidst the challenging market conditions, as key operational metrics demonstrated strong improvements in December in comparison to September, with the doubling of passengers carried by AirAsia Philippines while AirAsia Indonesia multiplied its number of passengers carried by 11 times. During the same period, the Group’s associate, AirAsia Thailand, increased the number of passengers carried by 31%, demonstrating a solid domestic rebound in air travel across the Group’s key markets.”

Looking forward, AirAsia Group CEO Tony Fernandes stated: “Throughout 2020 we focused on turning the crisis into an opportunity. We accelerated our digital transformation strategy to boost our non-airline contributions to the Group. We have used the downtime in flying to lay the foundations for more robust operations post-pandemic and put in place the right platform for a sustainable and successful future by rebranding ourselves as more than just an airline with the airasia super app.”