PETALING JAYA: AirAsia Group Bhd’s (AAGB) net loss for its fourth quarter ended Dec 31, 2020 widened to RM2.44 billion from RM384.44 million reported in the same quarter of the previous year due to a shortfall in revenue and several one-off costs, including a fuel hedging loss of RM391 million, impairment of right-of-use assets, receivables, finance lease receivables of RM1.5 billion and bankruptcy costs for AirAsia Japan of RM20 million.
Excluding these one-offs, AAGB would have reported a net loss of RM793 million. A significant RM654 million of the loss was related to depreciation of right-of-use assets and interest on lease liabilities. This was despite successful negotiations for deferrals with lessors, as due to Amendments to MFRS16: Covid 19 Related Rent Concessions, the income statement charge for depreciation and interest were not adjusted.
Revenue for the quarter stood at RM267.44 million, a 91.7% drop from RM3.23 billion reported previously.
For the full year, the group reported a net loss of RM5.1 billion, which widened from RM315.81 million in the previous financial year as it was impacted by the shortfall in revenue and several one-offs, including a fuel hedging loss of RM972 million, impairment of right-of-use assets, receivables, finance lease receivables of RM1.9 billion and bankruptcy costs for AirAsia Japan of RM20 million.
Excluding these one-offs, AAGB would have reported a net loss of RM2.9 billion. A significant RM2.5 billion of the loss was related to depreciation of right-of-use assets and interest on lease liabilities. This was despite successful negotiations for deferrals with lessors, as due to Amendments to MFRS16: Covid 19 Related Rent Concessions, the income statement charge for depreciation and interest were not adjusted.
Revenue for the year dropped 73.6% to RM3.14 billion from RM11.86 billion previously.
On the airline performance results and outlook, AAGB president (airlines) Bo Lingam said its strong rebound in Q3’20 for the Malaysian domestic market was hampered in Q4’20 with softer performance due to the partial lockdowns imposed in October and November. Nonetheless, with active capacity management, load factor was healthy at 72% in Q4’20.
“2020 was a year of survival but we have reviewed every aspect of our operations and made great strides in establishing a leaner and more optimised airline operation as we prepare for an expected surge in demand post-pandemic. Going forward, we expect to see improved stability in our operations as vaccinations continue to be rolled out in phases across all key markets. Furthermore, our robust business model provides confidence for a fast recovery. Even if borders remain closed, we are well-prepared to rely solely on domestic operations alone this year.
“We remain focused and committed to further strengthen our domestic position at this juncture as we await developments in regards to international air travel. In Malaysia, the domestic leisure bubble kicked off in mid-March following the easing of restrictions including the relaxation on cross-state tourism among states under the RMCO status. We are encouraged to see strong pent-up demand translating into spontaneous travel and an increase in forward bookings, as we briefly saw in December 2020 prior to the lockdown in January 2021.
“In regards to international routes, we are optimistic that operations will resume in the second half of 2021, highly influenced by the efficiency of vaccination rollouts globally. Within Asean, most countries are in the midst of vaccinating their population in phases to reach 40%-50% by Q3’21. Once borders are lifted, we expect to see a strong recovery in our overall performance given our low-cost model and dominant positioning in Asean.
AAGB CEO Tan Sri Tony Fernandes said it is encouraged by the early signs from its digital transformation to become Asean’s super app of choice and expect its digital and non-airline revenues to contribute around 50% to the group in five years.
Source: The Sun Daily
No comments:
Post a Comment