ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Transportation

AirAsia and its LCC rivals seek post-COVID rebirth

Malaysia-based budget airline suffers record quarterly loss of $237m

AirAsia pioneered the cut-rate airline model in Southeast Asia with a determination to keep seats filled and its jets in the sky, but new restrictions will likely test this business model.   © Reuters

SINGAPORE -- Low-cost airlines that contributed a new kind of connectivity to Southeast Asia in the years before COVID-19 find themselves with a little hope now that the strictest pandemic-related restrictions are being wound down but still anxious about their post-pandemic survival.

On Tuesday, Malaysia-based AirAsia announced a net loss of 992 million ringgit ($237 million) for the April-June quarter, falling into the red from a net profit of 17 million ringgit a year earlier. The figure represents the airline's largest loss since 2004 listing.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more