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AirAsia India which began operations in 2014, has never reported an annual net profit despite being conservative with its growth plans. (Photo: Mint)
AirAsia India which began operations in 2014, has never reported an annual net profit despite being conservative with its growth plans. (Photo: Mint)

AirAsia India posts 69% drop in Q2 revenue

The budget airline reported revenue of 221.55 crore in the three months ended 30 September

AirAsia India, the joint venture between Malaysia’s AirAsia Group Bhd and India’s Tata Sons Ltd, posted a 69% drop in revenue in the fiscal second quarter as the pandemic hit demand for air travel.

The budget airline, owned 49% by AirAsia Bhd and 51% by Tata Sons, reported revenue of 221.55 crore in the three months ended 30 September, compared to 724.24 crore a year earlier, AirAsia Bhd said in a filing with Bursa Malaysia on Tuesday.

AirAsia India “suffered losses due to the decline in revenue," the Malaysian company said, adding that the losses reported by the Indian venture is not equity accounted as the past losses had exceeded AirAsia Group’s cost of investments in the company.

The losses incurred by AirAsia India for the last quarter were not disclosed.

In the June quarter, AirAsia India’s losses widened sharply to 332 crore from the 15.11 crore loss it reported a year earlier amid curbs imposed by the government due to covid-19.

The September quarter saw the carrier’s fleet capacity shrink 64% from a year ago. “Average fare also saw an increase of 12% to 3,143 as compared to 3Q19. Average load factor was 62% with AAI (AirAsia India) operating 65% of its fleet," AirAsia Bhd said in its exchange filing.

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