AirAsia's pandemic recovery to take two more years, says Fernandes

AirAsia Group CEO Tony Fernandes said Thursday that a financial recovery is two years away as rising COVID-19 cases in major operating countries force prolonged border closures and travel restrictions. Fernandes, the budget carrier's co-founder, spoke as the airline reported a revenue decline of 87% in Q1 ended March 31 to 298.22m ringgit ($72m) from 2.31b ringgit posted in the same period last year. AirAsia also recorded a net loss of 767.42m ringgit, slightly better than the 803.85m ringgit in red ink registered in Q1 2020. The group had racked up its worst ever annual earnings for the full year 2020 as a result of domestic and international border closures to contain the spread of the coronavirus pandemic, which has ravaged global travel and airline industries. Fernandes said the carrier is optimistic a recovery is achievable in two years given immunization efforts in major Southeast Asian economies, better testing capabilities, expected global digital health passports and more travel bubbles within the region. "In most of our operating markets, inoculations are in progress and the majority will have had at least 50% of their population receiving at least one dose by the end of 2021," Fernandes said, adding that he recently received his first shot. "This is expected to deliver a huge boost for air travel demand for our key ASEAN markets, on top of strong pent-up demand," he said.<br/>