As a result of the fleet hibernation, PT AirAsia Indonesia Tbk' (IDX: CMPP) total passengers fell by 99.8 percent to 4,059 sitter in the first half of 2020, said the parent this week - Photo by the Company

JAKARTA (TheInsiderStories) – As a result of the fleet hibernation, PT AirAsia Indonesia Tbk‘ (IDX: CMPP) total passengers fell by 99.8 percent to 4,059 sitter in the second quarter (2Q) of 2020, said the parent this week. As a group, Malaysia’ AirAsia Bhd’ passenger number occupants and seat capacity also dropped by 98 percent in the same period to 204,082 in the same period.

The load factor of the group (Indonesia, Malaysia, Thailand, Philippines, and India) also fell to 59 percent and number of flights fell 98 percent to 1,868. During the pandemic, the issuer rely on essential movement of people and cargo, some of which had longer distance, contributing to a 3 percent increase in average stage length.

AirAsia Indonesia resumed operations on 19 June with five routes. At the end of July, the daily sales have reached five times of the daily sales recorded in early June, evidently showing signs of demand recovery.

In 2019, the company posted a revenues of Rp6.7 trillion (US$462.07 million), an increase of 52 percent from the same period on the previous year. Seat capacity grew 49 percent inline with the increase in the number of aircraft by four units, with a total fleet until the end of 2019 as many as 28 units.

Last year, AirAsia Indonesia recorded positive EBITDA with worth of Rp135 billion compared to the loss of EBITDA in 2018 of Rp809 billion. The flight carrier ended 2019 with a net loss of Rp157 billion, or 83 percent better than the prior year.

This year, said the President Director, Dendy Kurniawan, the pandemic will have a direct impact on the flight carrier’ businesses. He stated, since “On April 1, we briefly suspended all domestic and international flights to help prevent the spread of the outbreak.”

Currently, the AirAsia Indonesia together with 29 issuers have not submitted the 2019′ financial report to the Indonesia Stock Exchange together. Based on the regulation, the 30 companies will be subject to a fine of Rp150 million.

The Group gradually resumed operations at end-April as domestic travel restrictions eased. The issuer saw a pick up in key operational metrics in June as compared to May.

AirAsia Malaysia doubled up capacity in June compared to May, as the Malaysian government began allowing interstate travel from June 10. The unit achieved a 65 percent load factor while carrying 118,407 passengers in June, having reopened 24 routes by month’ end. The company expects to recover up to 70 percent of its pre-COVID-19 domestic capacity by 4Q of 2020.

While, AirAsia Philippines registered a 99 percent decline in number of passengers carried as the airline entity hibernated its fleet from March 20 to June 4. The subsidiary boasted 19 percent of capacity market and ended the quarter with the resumption of 6 routes. For the 4Q of this year, the flight carrier is targeting a recovery of domestic capacity up to 60 percent of pre-COVID-19 levels.

Then, in May 2020, AirAsia Thailand reinstated domestic flights in phases as lockdown measures were partially uplifted, but with social distancing measures implemented on-board as required by the authorities, before the measures were eased in mid-June. With the encouraging rebound traffic, the unit operated 18 percent of pre-COVID-19 capacity in June 2020, which more than doubled the May 2020 capacity.

The airliners resumed service to 18 of its domestic destinations in 2Q of 2020, topping peers with a leading capacity market share of 33 percent. In 3Q and 4Q of this year, AirAsia Thailand expects to operate 75 and 95 percent of pre-COVID-19 domestic capacity respectively.

Furthermore, AirAsia India restarted its domestic operations on May 25, and was quick to ramp up to 30 percent of pre-COVID-19 capacity in June, with 36 operational routes. The Group is optimistic over the subsidiary’ performance and is looking at domestic capacity resumption of 55 percent for 3Q and 80 percent for 4Q out of last year’s operations.

And, AirAsia Japan reported a decline of 98 percent in passengers carried with 4 percent operating capacity in 2Q of 2020, as flights were not restarted due to guidelines set by the government. AirAsia Japan resumed operations on August 1, 2020.

US$1: Rp14,500

Written by Editorial Staff, Email: theinsiderstories@gmail.com