AirAsia Group Berhad posted the 2nd quarter of 2020 revenue of RM119 million (PHP1.386B), down 96% from RM2.9 billion (PHP33.783B) in 2Q2019. The airline’s revenue declined 98% year-on-year (YoY) as capacity was significantly reduced due to the fleet hibernation at the end of March this year, prior to a gradual resumption of domestic operations from the end of April as travel restrictions eased. The airline revenue in the quarter was also negatively impacted by RM60 million (PHP698M) in refunds. Less impacted in the quarter, non-airline revenue declined 55% YoY.
The group posted a loss in 2Q2020 EBITDA of RM683 million (PHP7.956B), in comparison to EBITDA of RM254 million (PHP2.958B) in 2Q2019. Net loss for the period was RM1.2 billion (PHP13.979B), compared to RM47 million (PHP547M) in profit in the previous corresponding quarter. The loss was attributed primarily to a shortfall in revenue amidst subdued travel demand due to lockdowns and border restrictions worldwide as well a realized hedging loss of RM199 million (PHP2.318B).
AirAsia’s digital businesses demonstrated strong performance for the quarter. Airasia.com revenue was up by 137% YoY, faster than the 1Q2020 growth rate of 118%. BigPay revenue improved by 11% in 2Q2020. Remittance has been one of BigPay’s best features thus far, recording significant growth of 469% in 1H2020. Teleport also contributed to an all time high share of group revenue of 42% in 2Q2020 as medical aid and critical supplies were transported at the time of need. During the quarter, the Group’s digital pillar launched many exciting new businesses and products including the Unlimited travel pass, Food by AirAsia, OURFARM and SNAP.
As flights gradually resumed from the end of April, the Group saw a pick up in a number of key operational metrics in June as compared to May, including tripling the number of passengers carried by AirAsia Malaysia, doubling the number of passengers carried by AirAsia Thailand, and an increase of 10 percentage points in load factor, while AirAsia India achieved six times the number of passengers carried, reflecting the strong rebound demand for air travel.
“Over recent times, we have successfully pivoted from an airline to an all-in-one digital lifestyle company anchored on travel. There is a silver lining in every crisis and we have used the downtime to review every aspect of our operation and to expand and transform our three core digital businesses – the travel and lifestyle platform airasia.com, our logistics division Teleport, and fintech through BigPay and AirAsia BIG Loyalty. We exited the exclusive arrangement with Expedia in mid August and are now fully utilising our recently launched and direct sourced hotel booking platform under airasia.com, which we expect to see improved margins from, as a result of this new development. We are also pleased that SNAP, our direct sourced hotel+flight bundle deal is gaining momentum while we continuously push for more activities to add to our platform. Eventually, the airasia.com platform will include BigPay and AirAsia Big Loyalty which will further increase the velocity of transactions,” according to AirAsia Group Berhad CEO Tony Fernandes.
AirAsia Philippines Head of Communications Steps Down
David de Castro, AirAsia Philippines’ Head of Communications, said that he is leaving his post by September in an email sent to members of the media. De Castro has been the country communications head of the airline for more than a year now. Prior to his stint with AirAsia Philippines, de Castro was MIAA’s (Manila International Airport Authority) Chief of Media Affairs and Spokesperson.
Steve Dailisan Appointed as AirAsia Philippines Spokesperson
Weeks after he was retrenched in Cebu Pacific as a flight deck officer, word of former GMA News reporter Steve Dailisan being appointed as AirAsia Philippines’ spokesperson immediately circulated the interwebs when he posted this on his Twitter account: