AirAsia slashes Malaysia capacity recovery outlook

Malaysian budget airline AirAsia Group Tuesday slashed its outlook for its home market again although it expects a rebound in December. While encouraged by a resumption of domestic travel in Malaysia, Indonesia and the Philippines during the three-month period ended September 30, AirAsia said a spike in coronavirus cases in Malaysia and subsequent curbs had led it to reduce capacity in the country in October and November. It halved its projected recovery rate in Malaysia to 31% of its pre-COVID-19 capacity by the year end, after already lowering it to 60% last month from 70-75% in August. “There is a slight setback in Malaysia but we expect this to be short-lived and to bounce strongly in December,” CEO Tony Fernandes said. In Indonesia, it now expected be at 47% of pre-crisis capacity, versus a previous projection of 45%. AirAsia India is expected to operate at up to 67% of pre-crisis capacity versus a previous projection of 65%. For the Philippines, it expects to be at 13% of pre-COVID-19 levels, and maintained that its Thai operations are expected to exceed pre-COVID-19 capacity levels. Fernandes said the company had disposed of spare engines to raise cash and is open to other potential monetisation opportunities. He said it foresees sufficient liquidity in 2021 and expects air travel to bounce back mid-next year on hopes of the formation of travel bubbles and green lanes. “We have high hopes that with the availability and accessibility of effective vaccines, AirAsia will soon paint the skies red again,” he said.<br/>