We’re 10 months into 2020, and the global airline industry—including Asia’s largest low-cost carrier AirAsia—is far from recovering. If anything, it might be suffering more.
The Malaysia-based budget carrier saw its airline revenue decline 98% year-on-year in the quarter ended 30 June this year. The reason? Grounded flights in March and RM60 million (US$14.4 million) worth of consumer refunds for flights never taken.
AirAsia’s logistics arm Teleport posted a 54% decrease in revenue. ( We’ve written We’ve written The Ken Teleport-ing AirAsia out of Covid-19 Read more about Teleport before.) The revenue drop came from travel restrictions imposed by countries, which affected its revenue generating capacity to drop some 97%, a Teleport spokesperson said.