AirAsia Group posted total revenue of RM296 million for Q3, lower by 37% compared to last year and down 20% quarter-on-quarter (“QoQ”). Its aviation revenue declined 70% YoY to RM118 million compared to RM358 million a year ago, while its 9 months revenue declined from RM2.64 billion in 2020 to RM534 in 2021.
Net operating loss stood at RM887 million while the group, EBITDA loss was RM281 million for the quarter, narrowing by 38% YoY. The Consolidated Group ended the quarter with an improved cash position of RM401 million due to cash proceeds from Fly Leasing, funds from the convertible loan note into BigPay and tight ongoing control of costs. Net operating cash flow burn was lower YoY, averaging RM68 million per month in 3Q2021.
On the bright side, the new digital asset, airasia Super App reported 7% revenue growth, attributed to new product offerings and commissions. BigPay posted significant growth in revenue, up 26% driven by payments and remittances. Teleport’s revenue tripled due to the strategic growth of its cargo network to establish its presence in the market.
The Consolidated Group posted a 3Q2021 Net Loss Before Tax of RM1.11 billion, which narrowed by 4% YoY. Active capacity management and concentration on flying the most profitable routes as well as lease restructuring, asset optimisation, targeted cost control and the absence of any fuel swap loss, resulted in a 65% reduction in aviation operating expenses YoY. Overall, the loss was attributed to a shortfall in revenue and a foreign exchange loss of RM217 million in comparison to a foreign exchange gain of RM44 million in 3Q2020.
CEO Bo Lingam,“AirAsia Malaysia, AirAsia Indonesia and AirAsia Thailand experienced subdued momentum QoQ due to limited operations as travel was restricted for the most part of the quarter. Nonetheless, in a month-on-month (MoM) breakdown, AirAsia Malaysia more than doubled the number of passengers carried in September as compared to August.
Group CEO Tony Fernandes “we are pleased to share that we have received shareholder’s approval for the proposed renounceable rights issue of up to RM1 billion, we expect to complete the exercise by the end of this year. Additionally, we have received approval from Danajamin Nasional Berhad (Danajamin) for an 80% guaranteed loan of up to RM500 million under the Danajamin Prihatin Guarantee Scheme and approval from a foreigner lender for a US$150 million loan facility of which US$100 million has been drawn down.
While we continue to evaluate further funding, potential monetisation and other corporate exercises, as for now we expect to have sufficient liquidity until year end and throughout 2022.
