AirAsia India Registers Q2 Loss At Rs 29 Crore

AirAsia India, which started its domestic operation in June this year, has posted a loss of around Rs 29 crore for the July-September quarter (Q2). The airline had come up with various lucrative offers to woo passengers.

Entrepreneur Tony Fernandes-led AirAsia Berhad reported the loss in its September quarter earnings report that was issued on November 19. AirAsia Berhad has a 49% stake in the Indian carrier. The other stakeholders in the Indian venture are Tata Sons and entrepreneur Amit Bhatia. However, the Malaysian company did not reveal the revenues earned by AirAsia India.

AirAsia Berhad revealed that its Indian subsidiary is planning to add more aircrafts to its existing fleet and will also come up with a second hub in Goa. “In India, they (AirAsia India) will likely add two more aircraft in December, bringing it to a total of four aircraft,” it said.

It is important to note that the passenger load factor recorded by AirAsia India has fallen sharply since June. According to the data available with the Directorate General of Civil Aviation (DGCA), AirAsia India’s load factor, which stood at 80% in June, fell to 69.8% in July, 73% in August, 68.7% in September and 76.2% in October. However, its competitors such as IndiGo and SpiceJet maintained a load factor of over 75% during the same period.

AirAsia Berhad, which is also planning to fly to Delhi and Mumbai, is optimistic about the future growth of its Indian subsidiary. Now, it remains to be seen whether the carrier will post a profit in the next quarter.