AirAsia's losses may be broader, MAHB's earnings at stake due to Covid-19

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NSTbusiness: AirAsia Group Bhd’s losses could widen this year, owing to lower load factors and yields exacerbated by travel restriction following the Covid19 pandemic. coronavirus MCO MovementControlOrder

Kenanga Research aviation analyst Raymond Choo Ping Khoon said the current situation had taken a heavy toll on airlines operators, in particularly AirAsia which had hibernated flights across its operating countries in Asean.

AirAsia Indonesia is expected to see a sharp reduction in frequency in its international flights. Similarly, Choo said, adding that AirAsia Thailand’s international flights suspension would last until April 25. Meanwhile, Choo expects lower passenger growth at local international airports as most countries imposed temporary travel restriction and airlines started grounding aircraft.

Choo ecpects MAHB to be hit by the Covid-19 in terms of passenger traffic growth and potential tariff rebates or discounts on its retail rentals.

 

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