AirAsia Group’s 80% load factor in Q1 beats expectation

PETALING JAYA: AirAsia Group Bhd reported a group-wide load factor of 80%, which surpassed its expectation of 77%, achieved through proactive capacity management, particularly in February and March, with cuts most notable in AirAsia Malaysia and AirAsia Thailand.

In a statement, the group said amid increasing and unprecedented travel restrictions due to the Covid-19 pandemic, the number of passengers carried was down 21% year on year (yoy) to 9.9 million as capacity was reduced by 11%.

In first-quarter 2020, (Q1’20), AirAsia Malaysia reduced its capacity by 17% yoy, as business was heavily interrupted in light of the increase in Covid-19 cases in many markets and the movement control order in Malaysia. AirAsia Malaysia carried 27% less passengers yoy, with a reasonably strong load factor of 77%.

AirAsia Indonesia posted a 10% y-o-y increase in capacity for the quarter even though its available seat kilometres (ASK) retracted by 4%, as the company re-deployed excess capacity from international to domestic sectors. Passengers carried decreased by 7%, while load factor was moderate at 74%.

AirAsia Philippines flew 1.8 million passengers during the quarter, as capacity was reduced by 1% yoy on the halt of domestic and international routes beginning mid-March. Load factor was at 84%.

Capacity realignment and route rationalisation embarked upon by AirAsia Thailand in 2019 continued during the quarter to match the low travel demand. Capacity was reduced by 17% while ASK declined by 30%. It also recorded 84% load factor as it carried 4.5 million passengers, 23% lower than in Q1’19.

AirAsia India reported a 30% growth in the number of passengers, with the 43% additional capacity contributed by 10 more aircraft yoy. At the end of the quarter, the company had a fleet of 30 aircraft, while load factor remained steady at 81% despite rising travel concerns.

AirAsia Japan’s capacity expanded by 48% while ASK increased by 30% yoy with the addition of its latest route, Nagoya-Sendai which was launched in Q3’19. Load factor was at 72% for the quarter, as passengers carried increased at a slower rate of 32% on an annualised basis.

At the end of the first quarter, AirAsia announced a temporary fleet hibernation across operating companies in view of the novel coronavirus pandemic causing large-scale border restrictions in many countries.

“The effort to assist in containing the spread of Covid-19 is in line with the movement and travel restrictions imposed by governments of the markets that the group fly to. While the safety and well-being of passengers and employees remain the highest priority, AirAsia continues to proactively assess the situation and is prepared to gradually resume its flights as soon as possible,” it said.

The AirAsia group targets to end 2020 with 244 aircraft, a reduction of one from 245 aircraft as at the end of 2019.

source https://www.thesundaily.my/business/airasia-group-s-80-load-factor-in-q1-beats-expectation-BE2341003