AirAsia is confident it can return to profitability in 2021, CEO says

AirAsia is confident it can bounce back to a profitable position next year, even as the threat of a resurgence in coronavirus cases is weighing down the global aviation industry, CE Tony Fernandes said Wednesday. That target “sounds incredibly bullish, but I’ve been through many, many crises before,” Fernandes said. He explained that Asian authorities have become “much, much smarter” in the way they handle further outbreaks of the coronavirus disease, or Covid-19. That will help the region’s aviation industry to recovery in a “much more sustainable” way, he said. “I think that’s giving me a lot of confidence in some of my bullish statements,” he added. Last week, auditors EY issued an audit opinion that cast doubt on AirAsia’s future given the slump in air travel on the back of the pandemic. The company’s shares plunged 17.5% after the release of the audit opinion. Fernandes said the auditors gave “a very fair view” but reiterated that the airline is “well on the way” to raise the funds it needs to ensure its survival. He added that the funds could come in the form of a government loan, more equity issuance or debt. The amount the company is looking to raise is “a moving target,” he said, adding that he’ll “be very comfortable with a billion” ringgit ($234.4m) and “super, super comfortable with 2 billion ringgit ($468.9m).”<br/>