Air Asia PH reduces losses, expects to break even this year

The Philippine unit of Southeast Asia’s largest budget airline said net loss fell 46 percent to P3.09 billion in 2015 from P5.18 billion in 2014.  

Air Asia Inc., operator of Air Asia Philippines, posted a net loss of P118.79 million in the October-to-December period from a loss of P1.28 billion year-on-year.

“We are proud to have turned around our operations [in the Philippines] in this quarter and achieved figures close to breakeven,” AirAsia Group chief executive Tony Fernandes said. 

Fernandes said the company expects a similar trend this year, with a revenue improvement of 25 percent to 30 percent projected in the first quarter of 2016 from a year ago.

“In addition, our forecast shows high load factor in the current quarter, which coupled with low oil prices, is expected to allow us to continue achieving break even or even profitability in our Philippines’ operations in the coming months,” he said. 

The company’s revenues amounted to P8.93 billion in 2015, up 18 percent from P7.54 billion in 2014. 

The airline company attributed the 19 percent growth in revenue to the increase in the number of passengers carried, as capacity rose 3 percent  year-on-year.

Air Asia Philippines carried 3.59 million passengers in 2015 from 3.03 million last year, while load factor rose to 81 percent. 

The airline has 14 operating aircraft serving domestic destinations, such as Kalibo (Boracay), Puerto Princesa (Palawan), Tagbilaran (Bohol), Cebu and Tacloban. It also flies to China, Korea, Macau and Hong Kong. 

“We will be disciplined and continue with our planned retirement of two remaining inefficient aircraft in first quarter of 2016 as well as matching capacity growth with demand, while pushing forward with our plans to market the Philippines as an untapped tourist destination with great potential as part of the governments campaign to ‘Visit the Philippines Again 2016’,” Fernandes said.

Malaysia’s Air Asia, through AA International, owns 40 percent of Philippines’ Air Asia Inc., while Filipinos Marriane Hontiveros, Michael Romero, Antonio Cojuangco and Alfredo Yao own the balance of 60 percent. 

Topics: Air Asia Philippines , Air Asia Inc. , net loss
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