Food
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.
