AirAsia India loss in September quarter shrinks 5% to Rs 62 cr

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New Delhi | Published: December 15, 2016 6:29:09 AM

Air Asia India on Wednesday reported a 4.84% y-o-y decrease in its net loss to R62 crore for the quarter ended September 30, 2016 on the back of substantial increase in passenger and ancillary revenue.

In the corresponding period in 2015 the low cost airline reported a net loss of R65.26 crore. (Reuters)In the corresponding period in 2015 the low cost airline reported a net loss of R65.26 crore. (Reuters)

Air Asia India on Wednesday reported a 4.84% y-o-y decrease in its net loss to R62 crore for the quarter ended September 30, 2016 on the back of substantial increase in passenger and ancillary revenue.

In the corresponding period in 2015 the low cost airline reported a net loss of R65.26 crore.

The total number of passengers carried during the quarter in the domestic market increased by a whopping 42% y-o-y which consequently increased Air Asia’s revenue by 32% y-o-y to R175 crore during the period. The airline saw an average load factor of 88% which is an increase of 12 percentage points from the same period last year during the quarter.

“India has been progressing very well in the past few quarters. Load factor hit another record high, demonstrating that our guests prefer flying with us. This is after we added capacity of 23% year on-year. We are growing the market in India, as we have been doing in all the airports we operate at,” said Tony Fernandes, chief executive officer Air Asia group.

The ancillary income per passenger during the quarter has also increased by 13% according to the company. AirAsia India currently flies to 11 destinations with its two hubs in Bengaluru & New Delhi covering Chandigarh, Jaipur, Guwahati, Imphal, Pune, Goa, Vizag, Kochi and Hyderabad.

In July the Air Asia group placed an order of 100 A320 Neo aircraft to Airbus and the Indian subsidiary is supposed to get some of the new aircraft to increase its fleet size to 20 which will make the airline eligible to fly on the international routes. At present Air Asia India operates with 8 aircraft and is expected to increase the fleet size to 20 aircraft by 2018.

In the coming quarters Air Asia will look to expand its network across the country. “Our focus in India remains on building our footprint in the Indian domestic market by ramping up frequencies on trunk routes and rolling out new routes and destinations to give Indian flyers more choices and lower fares,” added Fernandes.

Air Asia group has been focusing on digitisation to increase the ancillary revenue of the airline in all the geographies in which it operates with the help of services like BIG Duty Free, BIG Pay, BIG Loyalty, Touristly, Rokki onboard Wifi and Xcite inflight entertainment to name a few.

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