AirAsia parent narrows Q3 loss on strong demand recovery, upbeat outlook

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FILE PHOTO: Airasia planes are seen parked at Kuala Lumpur International Airport 2

(Reuters) – Capital A Berhad, the parent of Malaysian budget airline AirAsia, reported a narrower third-quarter operating loss on Wednesday, buoyed by a strong rebound in travel demand and the easing of pandemic-related restrictions in Southeast Asia.

It also forecast a positive outlook for the upcoming years on strong sales momentum and reopening of travel restrictions, projecting stronger air passenger traffic in the next quarter.

Capital A posted an operating loss of 563.9 million ringgit ($127.00 million) for the three months ended Sept. 30, compared to a loss of 893 million ringgit in the year-ago period.

It reported a sharp 563% increase in revenue to 1.96 billion ringgit from last year’s 295.9 million ringgit.


Earlier, the firm reported it carried 9.9 million passengers in the third quarter, a nearly 2,200% jump from a year ago, boosted by an upsurge in domestic demand and the resumption of international travel in Southeast Asian countries.

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“The group is taking all measures possible to return grounded fleet back into service, with a projection of 140 operational aircraft by the end of this year, and full operations by second quarter of 2023,” it said in a filing.

The company also plans to combine its AirAsia budget airline business with its long-haul offshoot AirAsia X as part of a corporate restructuring designed to shed its status as a financially-distressed firm, CEO Tony Fernandes said on Tuesday.

($1 = 4.4400 ringgit)


(Reporting by Sameer Manekar and Riya Sharma in Bengaluru; Editing by Janane Venkatraman)

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