KUALA LUMPUR AirAsia Group Bhd recorded a net loss of RM887mil in the third quarter ended Sept 30, 2021, compared to a net loss of RM851.78mil in the previous corresponding quarter.

       In a bourse filing, the group said it scaled up its business in superapp and Teleport, resulting in a widening of losses as a result of investment in technology, talent and network.

       Basic loss per share came to 22.80 sen versus 25.50 sen in the year-ago quarter.

       The group reported that revenue slumped 36.9% year-on-year (y-o-y) to RM295.89mil as a result of flight restrictions in Malaysia and Indonesia, which resulted in a decrease in passengers carried by 91% and 79% respectively.

       Revenue for the airline segment alone in 3Q was RM118mil, a 70% decline from 3Q20 due to the increase in flight restrictions.

       However, the lower airline revenue was cushioned by logistics arm Teleport's revenue, which tripled during the quarter and contributed 53% to total 3Q21 revenue.

       "As part of the group’s transformation journey to be more than an aviation group, the group is nearing its completion of its restructuring of the distinct business pillars within the group with independent management.

       "Other than the aviation industry, we are seeing traction in our aircraft engineering maintenance business under Asia Digital Engineering, cargo and last mile deliveries under Teleport, airasia superapp and Bigpay," it said.

       While still in its first year of operations, the group said the aircraft engineering maintenance business is able to provide faster turnaround time for maintenance checks for aircraft as travel picks up and airlines are reactivating aircraft that were in hibernation.

       Airasia superapp has expanded its offerings beyond the travel segment, with airasia food expanding its offerings to Singapore, Johor Bahru, Melaka, Kota Kinabalu, Penang and Bangkok and other offerings such as airasia rides and travel mall.

       BigPay has also applied for a digital banking licence in Malaysia with a consortium of strategic partners.

       Teleport is focusing on building out a reliable cargo network and a 24-hour delivery end-to-end infrastructure with the conversion of two A320 passenger aircraft as cargo only planes and leased one freighter aircraft.

       Teleport is also currently working on leasing another two freighter aircrafts targeted to be made available in 3Q22.

       The group noted fundraising efforts include the proposed redeemable convertible unsecured Islamic debt securities (RCUIDS), which is expected for completion by the year-end, and a renegotiation of lease terms with lessors, which will result in lower lease rental for aircraft.

       "Through these various fundraising exercises and cost containment measures that the group is working on, the board foresees it will have sufficient liquidity to sustain the business operations throughout 2021 and 2022," it said.

       Year-to-date, AirAsia has incurred a net loss of RM2.66bil on revenue of RM2.97bil.