AirAsia expects solid domestic demand in key Asean markets

 

AirAsia Group Bhd expects to see solid domestic demand in its key Asean markets in the next few quarters. NST pix by Saifullizan Tamadi.

KUALA LUMPUR: AirAsia Group Bhd expects to see solid domestic demand in its key Asean markets in the next few quarters.

In its operating statistics for the first quarter (Q1) of 2021, the low-cost carrier (LCC) said solid demand would be backed by the vaccinations of majority of the population and strong pent up demand.

The group carried 0.98 million of passengers in Q1 compared to 9.85 million passengers in the same period last year.

Its load factor stood at 67 per cent during the period from 77 per cent achieved last year with a total aircraft fleet of 149.

AirAsia posted an improved operating in March for all entities in comparison to February as countries worldwide focused on accelerating vaccination programmes in efforts to reach herd immunity as soon as possible.

On a month-to-month basis, key operational metrics progressed in March compared to February with an 84 per cent increase in passengers carried by AirAsia Malaysia, 57 per cent increase in passengers carried for AirAsia Philippines, 29 per cent increase in passengers carried by AirAsia Indonesia, while AirAsia Thailand more than doubled its number of passengers carried.

Aided by stringent capacity management, AirAsia Malaysia posted a healthy load factor of 73 per cent in Q1, despite a lower number of passengers carried, it said in a statement today.

AirAsia Malaysia saw its load factor improving by 9.0 percentage points (ppts) to 76 per cent as a result of a higher number of passengers carried.

AirAsia Malaysia is optimistic about the ongoing inoculation drive in Malaysia, leading to a stronger and sustainable recovery this year.

AirAsia Indonesia gained a 29 per cent increase in passengers carried and achieved an improvement of 2.0 ppts in load factor for March compared to February.

AirAsia Philippines leveraged a strong rebound in travel demand during the quarter, carrying 168,527 passengers and a 43 per cent increase compared to the fourth quarter of 2020.

"The higher number of passengers carried positively resulted in an increase in load factor of 10 ppts quarter-on-quarter (QoQ) to 74 per cent."

A month-on-month (MoM) breakdown showed that AirAsia Philippines grew its passengers by 57 per cent despite only increasing 30 per cent in operating capacity in March compared to February 2021.

This has resulted in a commendable 81 per cent load factor in March.

Meanwhile, AirAsia Thailand posted a 65 per cent QoQ decline in passengers carried due to lower travel demand caused by the new wave of the Covid-19 pandemic in Thailand in the mid-December 2020.

Nonetheless, it said domestic travel demand rebounded in March due to the roll out of vaccines, the extension of domestic tourism stimulus schemes and lower new infections in the latter part of the quarter.

-nst online.