SEPANG: Capital A Bhd’s aviation arm, AirAsia Aviation Group Ltd, is optimistic that group earnings can revert to pre-pandemic levels by year-end with the reopening of Malaysian borders from April 1.

       AirAsia Aviation Group Ltd group chief executive officer Bo Lingam said the company will be able to achieve its targets should more countries relax or remove their travel restrictions completely.

       “To be able to go back to pre-Covid earnings, I assume by the end of the year. Hopefully, fuel prices will have also gone down by then,” he said at a media briefing yesterday.

       Come April 1, Lingam said the group’s local operations will be operating 42 aircraft in Malaysia.

       “In Thailand, we will have 23 aircraft. We will also have eight aircraft each being operated in Indonesia and the Philippines.”

       On March 8, Prime Minister Datuk Seri Ismail Sabri Yaakob announced that Malaysia will reopen its borders from next month as it seeks to revive the country’s economy, especially the tourism industry, which has been severely affected by the Covid-19 pandemic.

       AirAsia Malaysia chief executive officer Riad Asmat said the decision was “a very encouraging approach for the country.

       “We’re hoping for the best going forward. I believe that the seamlessness of travel will happen sooner than later.

       “There are still variables and challenges in existence, but in the next couple of months I think things will change for the better. Malaysia will benefit from this by being one of the first movers, especially in terms of border relaxation.”

       Riad added that the group will increase the number of international flights regularly from April 1. “From April 1, all the way to May, we will increase the number of international flights. It culminates to about 25% and 26% of pre-Covid levels.

       “Of course, it also depends on the reopening of borders in other countries. If they can do it sooner, then we can increase our numbers.”

       With the reopening of borders, Riad said the group will strive to ramp up its passenger load factor as quickly as possible.

       “We need to hit a passenger load of between 80% and 90% on a daily basis. Our target is to be able to fill it up as much as possible, both ways.”

       Riad also said the airline had begun hiring employees. “From a Malaysian perspective, we’ve already started recalling our furloughed employees. Some units are hiring, some are recalling.

       “But it’s all being monitored and balanced correctly and carefully because we also don’t want to overdo it,” he said.

       With the continued easing of travel restrictions, Capital A said in a statement yesterday that it had increased its domestic flight capacity by 156% since October 2021 when the Langkawi travel bubble was kickstarted.

       It also said flight capacity had increased by 50% for international flights since the government’s announcement of borders reopening in April on March 8, with a total of 75 aircraft in operations currently group-wide.

       “This was also supported by the reopening of other countries like Thailand, the Philippines, Indonesia, Cambodia, Singapore and Vietnam,” it said.

       Capital A narrowed its net loss to RM3.12bil in the financial year ended Dec 31, 2021 from RM5.11bil in 2020. Revenue shrank to RM1.73bil versus RM3.27bil previously.

       For the fourth quarter ended Dec 31, 2021, net loss trimmed to RM884.09mil from RM2.46bil in the previous corresponding quarter, while revenue jumped to RM717.12mil compared to RM328.39mil previously.