AirAsia Group has reiterated its position on how it is responding to the current business environment.
As it faces geopolitical uncertainty, fluctuations in fuel prices, cost pressures, and changing market conditions, the group said it will continue to operate with discipline.
In the second quarter, it recovered approximately 70% of the increase in fuel prices through higher fares and reductions in non-fuel operating costs. In the third quarter, it reduced capacity by 20% to 25% in line with a seasonally weaker period of regional demand, and is preparing to restore capacity in the fourth quarter ahead of the busy year-end travel season. It also returned 25 older, less fuel-efficient aircraft on favorable terms, reducing fixed lease obligations. Business integration within the group has also made it easier to optimize supply and demand across the network.
The group explained that its fundraising is primarily intended for debt restructuring, refinancing, and balance-sheet consolidation, rather than simply to cover working-capital shortfalls. It said it will make a formal announcement once definitive terms have been finalized, and urged market participants to make decisions based on official disclosures.
Reuters reported that the Malaysian government had asked Malaysia Airlines and Batik Air whether they could absorb AirAsia’s share of the domestic market. AirAsia accounts for around 60% of Malaysia’s domestic air travel market and approximately 40% of the overall Malaysian market.
Bo Lingam, Group Chief Executive Officer (CEO), commented: “Over our 25-year journey, we have experienced many crises. What is different today is that people are still flying and travel continues. There is much speculation in the media, much of it inaccurate, but there can be no doubt about our commitment to business continuity and serving our customers.”
Skytrax, an airline rating organization, has named AirAsia the “World’s Best Low-Cost Airline” for 17 consecutive years.
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