Connect with us

Business

AirAsia Sees Revenue Growth Despite Worsening Inflation

Published

on

Even in difficult times, AirAsia X finds revenue growth. “Strong demand,” according to aviation experts, contributes to the industry’s promising future.

“We’re looking to add 20 more aircraft to the fleet for the first time in a long, long time, even before Covid,” said Tony Fernandes, the CEO of Capital A, the parent company of AirAsia.

“In AirAsia, we have 205 aircraft, and in AirAsia X, we have about 20 aircraft. So getting slots and getting them ready for service has been a big challenge.”

Earlier this week, Fernandes stepped down as CEO of AirAsia. Despite the market’s unpleasant responses, the business persevered and exceeded its projections in terms of earnings. The low-cost AirAsia airline is called AirAsia X. Shares fell at the end of October after the former CEO retired. The company’s performance was nevertheless 5% better than anticipated.

“Unfortunately, whatever I do gets blown out of proportion. I went in there [AirAsia X] for a short period … I just went in there to kickstart an airline that would have been heavily restructured and was in hibernation,” Fernandes added.

Read Also: US President Biden Calls for a Peaceful Midterm Polls

Capital A supervising AirAsia

AirAsia is listed as PN17 on Bursa Malaysia. This implies that there are financial issues at the company right now. The company management is optimistic that they will leave PN17 soon, in light of the most recent report.

“I think we’re coming out of PN17. While I was very against it, I thought it was harsh to put us into PN17. We’ve turned a negative into a positive. My job now is to ensure we deliver profitability, good cash flow growth, have the right funding on all of these, and from where we were. The sky looks really good,” the Capital A CEO added.

Fernandes, currently in charge of Capital A and has left AirAsia, declared that he would delve into the bigger picture of the entire company. He claimed he was embarking on a mission to discover Capital A’s actual value.

Read Also: Seoul Halloween Stampede Leaves 154 Dead, Loved Ones Mourn for Victims

The company with e-commerce

“I’ve been through many economic slowdowns, and people will go to the best-value operator,” said Fernandes.

E-commerce expanded thanks in part to the pandemic. Fernandes emphasizes the business’s e-commerce component as well. So he asserted that e-commerce is here to stay.

Aside from that, he added that he is unconcerned about rising inflation in the US. Future service expansion is a goal for Capital A. For instance, plans for its engineering firm, Asia Digital Engineering, and its restaurant brand, Santan, have already been laid out. The management will also strengthen the consulting division of Capital A. Following the report, Fernandes grew confident that, given its current services and pricing structure, AirAsia X would continue to perform better.'” Even in logistics, it’s a wonderful time for us to grow. We’ve taken three cargo planes for the first time in our history.”

“It still takes a long time to ship products, even from Kuala Lumpur to Singapore. [At] AirAsia, we do it in a day now. And so we will do point-to-point logistics, change the whole model, and we see a huge opportunity for us,” the CEO added.

Photo Credit: AirAsia

Source: CNBC

Scarlet Logan is a marketing professional who loves writing. She graduated with a double major in journalism and economics.

Trending