Malaysia based low-cost carrier, AirAsia, reported a net loss of MYR953 million (USD224 million) in the first quarter of 2020, down from an MYR102 million (USD24 million) profit within the same period in 2019. This is the largest net-loss the company faced since November 2004.
Photo by Ernest Leung | AeroNewsX
CEO of AirAsia Group, Tony Fernandes said that "This is by far the toughest challenge we have faced since we began in 2001. Every crisis is an obstacle to overcome, and we have restructured the group into a leaner and tighter ship. We are positive in the strides we have made in bringing cash expenses down by at least 50% this year, and this will make us even stronger as the leading low-cost carrier in the region."
AirAsia Group has struggled due to the COVID-19 pandemic. The airline suspended both domestic and international flights in March 2020 due to the strict travel restrictions. The airline has since resumed flights in April 2020. The airline will resume flights gradually, focusing on resuming domestic flights followed by flights to ASEAN countries and the rest of Asia when travel restrictions have been lifted.
Tony Fernandes also said that "We have applied for bank loans in our operating countries to shore up our liquidity. We have also been presented with proposals to raise capital to strengthen our equity base and/or liquidity from a number of investment bankers, lenders as well as potential investors to help the company weather the storm caused by the COVID-19 pandemic."