Low-cost carrier AirAsia India on Thursday said net operating loss widened to Rs 290 crore in the third-quarter, hurt in part by higher fuel costs and drop in passenger traffic.
The airline, a joint venture between autos-to-steel conglomerate Tata Sons and Malaysian low-cost carrier AirAsia Group Bhd, had reported a loss of Rs 16.8 crore in the corresponding quarter last year.
Revenue rose 16 percent to Rs 458 crore in the three months ended September 30, the parent AirAsia Group Berhad said
in an exchange filing.
AirAsia India's average seat kilometer or ASK, a measure of capacity, jumped 61 percent during the quarter but higher costs offset revenue it earned per seat.
The airline reported a 13 percent increase in cost per available seat mile or CASK, a measure of unit cost, due to higher operating lease expenses and aircraft fuel expenses. However, its revenue per available seat kilometer (RASK) dropped 28 percent.
"India has reported a net operating loss of Rs 291 crore as a result of 61 percent increase in ASK to fulfill domestic demands as well as in accordance with our plan to start flying Indian passengers internationally to our group’s Asean destinations," the company said in an exchange filing.
The Bengaluru-based airline's average fare and unit passenger revenue decreased by 15 percent and 13 percent respectively, in the quarter "due to competitive operating environment".
Its load factor, a measure of seats filled, plunged 76 percent as the increase in passengers carried was lower than the 53 percent increase in capacity, the company said in the filing.
Surge in global crude oil prices also weighed on the airline's performance.
The average cost of fuel in the quarter was 50 percent higher than in the same period a year earlier, the company said.
Ancillary revenue, which it generates from service fees, onboard meals etc, rose 26 percent to Rs 50.5 crore in the quarter.
"The forward air travel demand is still going strong for all our key markets. We are focused on turning around Indonesia and Philippines next year, with plans for the secondary listing to take place in FY2019 for our Indonesia operations. As for India, our plan is to start flying international," AirAsia Group CEO Tony Fernandes said in the statement.
AirAsia Group, CEO Tony Fernandes and its domestic entity AirAsia India are in the midst of legal battle after the Central Bureau of Investigation (CBI) in May filed a case against them over allegations of corruption and breaking rules in obtaining a flying licence.
AirAsia India has refuted the allegations of wrongdoing.
First Published: Nov 30, 2018 6:24 PM IST
