Tony Fernandes, group president of AirAsia Bhd., speaks throughout a Bloomberg Television interview on the sidelines of the Bloomberg New Economy Online Forum in Singapore, on Wednesday, Nov. 7, 2018. Wei Leng Tay|Bloomberg through Getty Images
SINGAPORE– The outlook for the global air travel industry is enhancing as more countries begin presenting mass immunization programs against Covid-19, AirAsia employer Tony Fernandes stated Tuesday. As one of Asia’s top spending plan airline companies, AirAsia expects to resume flying to “a big part” of its paths by the end of 2021 however passenger capability is not anticipated to go back to pre-coronavirus pandemic levels till 2023, according to Fernandes. “It’s been the toughest difficulty,” he informed CNBC’s “Squawk Box Asia,” as part of the network’s protection of the Davos Program. “But I believe the outlook’s getting better.” “The most crucial thing is there’s a substantial amount of demand out there and we just have to wait for borders to open and I believe we are among the very first sort of businesses that will recuperate, from an airline company point of view, because we’re really strong in domestic and local,” he stated.
The coronavirus pandemic has paralyzed the global travel and tourism sector. It’s sent out numerous airlines into survival mode as they undertake mass layoffs, cancel orders, retire some of their existing fleet and cut down paths. In December, the International Air Transport Association (IATA) said airline companies will suffer a bottom line of $118.5 billion for 2020 and an anticipated net loss of $38.7 billion in 2021. AirAsia is also struggling. In November, the company reported a fifth straight quarterly loss between July and September and remains in the process of raising funds through loans and investors. Fernandes stated the business is looking at raising approximately 2.5 billion Malaysian ringgit ($618 million) for the entire group. That consists of AirAsia’s digital business and the logistics system– both of which are performing well, according to Fernandes. “We’re a bit behind schedule than we wanted to be but the amount’s exactly where we wish to be. We are really confident that this capital that we’ll raise will take us well into 2023,” he stated, including that the company will emerge with a much better expense structure, a strong digital service and good demand for the airline. The AirAsia stock is down almost 22% so far this year. Fernandes also said AirAsia is in talks with Airplane and that the airline company’s long-term order book stays. “We’re going to have to delay some of it to a later date,” he stated, adding, “We don’t want to change that for short-term decisions.” AirAsia is one of Jet’ biggest consumers because the airline company made a switch from Boeing years back. Reuters reported that ever since, AirAsia has actually ordered an overall of more than 660 Airplane jets including planes yet to be provided.