Site icon Delligsen online News

‘Ludicrous statement’: AirAsia co-founder Tony Fernandes rebuts report claiming it needs government bailout

In its media statement on Friday, AirAsia said that the group’s resilient low-cost model, combined with strategic fare optimisations and ancillary revenue growth, positions it to absorb these industry-wide pressures as it remains focused on long-term growth.

“We have been through many crises before in our 25-year journey, with COVID-19 being by far the most challenging,” said Lingam. 

“What is different today is that people can still fly and travel continues.”

The airline is also taking a “disciplined approach to managing the business”, Lingam said, sharing that the airline had managed to recover around 70 per cent of fuel price increases through dynamic fares and lower non-fuel operating costs.

It also reduced passenger capacity by 20 to 25 per cent in the third quarter of the year, said to be a “weaker travel period in the region”.

The airline is now preparing to increase capacity back towards pre-war levels in the fourth quarter of the year, in line with the region’s peak year-end travel season, the statement added.

“We are managing industry-wide headwinds from a position of strength, executing a clear and strategic plan for sustainable and profitable growth,” the statement said.

“We are encouraged by the outlook for the peak fourth quarter and remain confident in the long-term potential of AirAsia. Our focus is on the fundamentals of our business and we will not be distracted by unsubstantiated speculation from anonymous sources.”

Exit mobile version