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Budget carrier AirAsia India’s net loss has widened to ₹308.21 crore for the third quarter (July-September, 2018) on account of higher fuel costs.
The net loss for the airline, which is jointly owned by Tata Sons and AirAsia Berhad, during the same period last year was ₹16.39 crore. Its net operating loss widened to ₹290.8 crore in the third quarter compared with ₹16.6 crore.
The airline’s total revenue increased 16 per cent to ₹458.17 crore, mainly due to a 36 per cent increase in the number of passengers carried. Average Fare and Unit Passenger Revenue decreased 15 per cent and 13 per cent respectively, due to the competitive operating environment, the airline said in regulatory filings.
The average seat kilometre or ASK, which is a measure of capacity, grew 61 per cent but its revenue per ASK dropped 28 per cent. Its cost per available seat km increased 13 per cent. The consumption of fuel increased 61 per cent, while the average fuel price per barrel grew 32 per cent.
Because of the competitive market, AirAsia India’s average fare decreased 15 per cent and unit passenger revenue went down by 13 per cent. The load factor (measured in terms of seats occupied) decreased to 76 per cent from 85 per cent.
“In India, the forecast load factor for the fourth quarter of 2018 is at 87 per cent. AirAsia India will remain focused on strengthening its domestic market existing routes by increasing frequencies whilst growing to 20 aircraft to expand for international operations,” the airline said in its filing with regulatory authorities.
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