AirAsia’s Indonesian parent company cuts losses in 2021 despite 61% drop in revenue | News

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AirAsia Indonesia reduced its full-year operating loss despite a drop in revenue caused by the coronavirus pandemic.

For the year to December 31, the parent company of low-cost carrier Indonesia AirAsia was Rp1.67 trillion ($115 million) in the red operationally. This compares to the Rp 2.8 trillion loss it recorded for 2020.

Full-year revenue plunged 61% to 626 billion rupees, dragged down by a slump in passenger travel revenue. Indonesia AirAsia suspended operations for nearly three months from July 2021, due to pandemic-related travel restrictions as Indonesia battled a spike in infections. The company adds that revenue from freight and chartering has improved year on year.

Full-year spending fell 48% to Rs 2.3 trillion, mainly due to reduced flight activity, which led to lower fuel, maintenance and flight service costs from one year to the next.

AirAsia Indonesia narrowed its full-year net loss slightly to Rp 2.3 trillion from Rp 2.8 trillion in 2020.

The company ended the year with 21 billion rupees in cash and cash equivalents, higher than the 18.7 billion rupees with which it started 2021.

Regarding efforts to accelerate recovery, AirAsia Indonesia said it will continue to impose cost-cutting measures. including implementing pay cuts, as well as reducing events, marketing, and sponsorship costs.

He will also continue discussions on payment deferrals and renegotiation of costs.

“In addition, the group has obtained the financial support letter from Capital A (formerly AirAsia Group Berhad) indicating that it will continue to provide sufficient financial support for operations,” says AirAsia Indonesia.

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