KUALA LUMPUR: AirAsia X Bhd posted a net loss of RM549.7 million for the first quarter (Q1) ended March 31, 2020 compared to a net profit of RM43.33 million in same quarter last year.
In its filing with Bursa Malaysia today, the airline said revenue decreased 21 per cent to RM924.09 million from RM1.168 billion last year due to the decrease in the number of seat capacity and passengers carried.
"During Q1 2020, a total of 1,141,713 passengers were carried, down by 25 per cent from 1,512,546 passengers carried during Q1 2019, while seat capacity was cut by 15 per cent to 1,544,121 as travel restrictions and border controls lead to a drop in travel demand.
"In January 2020, the carrier was charting profits at an operating level, which serves as a testament to the network rationalisation efforts undertaken since 2019.
"It was only since February 2020 during the onset of Covid-19 that the demand for air travel was impacted," it said.
Group chief executive officer Nadda Buranasiri said its operating environment was aggravated by the Covid-19 outbreak in the beginning of this year.
Nadda said AirAsia X Malaysia scaled down flight frequency to all markets in several phases beginning with China in February.
"In the beginning of 2020, the carrier's operating environment was aggravated by the Covid-19 outbreak.
AirAsia X Malaysia scaled down flight frequency to all markets in several phases beginning with China in February.
"In mitigating the adverse effects from COVID-19, we have had to undertake the temporary hibernation of our fleet under AirAsia X Group, as AirAsia X Malaysia suspended all scheduled operations from March 28, 2020 onwards, while AirAsia X Thailand's scheduled operations have been suspended from March 16, 2020," he said.
However, he said AirAsia X has kept a handful of aircraft operational in providing assistance to the relevant authorities due to increase in demand in the global supply chain for essential goods and to facilitate the repatriation of travellers.
On outlook, Nadda said the company remains confident that demand will pick up towards the end of this year.
However, he said the airlines will remain in hibernation mode as the prospects of resuming scheduled flights is tied to the recovery in international air travel demand in the coming months as and when border controls and travel restrictions ease.
"For 2020, the company has hedged at an average Brent hedge price of US$61.40, while 70 per of our 2020 Brent fuel hedging contracts have been restructured in one form or another.
"Nonetheless the group is focused on ensuring that all aspects of its operations are ready to be ramped up when air travel recovers and comprehensive health and safety measures are put in place for its guests and crew," he added