AirAsia Group airlines anticipate strong recovery in 2Q

Premium Analysis

The AirAsia group is something of a bellwether for the Southeast Asian airline industry due to its footprint in a range of countries in the region. So the widely varying rates of recovery for the group’s members give important indicators of the outlook for both the AirAsia empire and the broader Southeast Asia region.

The brutal period that AirAsia has endured during the COVID-19 pandemic is highlighted by the RM5.9 billion ($1.4 billion) annual loss it reported for 2020.

But looking ahead, the airline believes there is reason for near term optimism, as demand is projected to improve in its most important domestic markets. Some are bouncing back strongly towards pre-COVID levels, while others are in weaker condition as they prepare to emerge from the latest lockdowns.

But the general trend is upward in the second quarter. The group's view is that there is even light at the end of the tunnel for its international operations, which have suffered most during the pandemic.

Granted, it is in AirAsia’s interests to paint a positive picture as it seeks to reassure financial markets during what is still a pivotal period for the airline. Nevertheless, it certainly has grounds to predict general improvement as it moves towards midyear and beyond.

Become a CAPA Member to access Analysis Reports

This CAPA Premium Analysis Report is 1,591 words.
Become a CAPA Member

Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.

Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.

CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.