Malaysian budget airline parent company reports loss on recovery

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Malaysian budget airline parent company reports loss on recovery

The parent company of Malaysian budget airline AirAsia reported a narrower third-quarter operating loss this week, benefiting from a rebound in travel and the easing of pandemic-related restrictions in Southeast Asia.

Capital A Berhad predicted stronger air passenger traffic in the next quarter and predicted a positive outlook for the upcoming years based on strong sales and easing travel restrictions.

It also reported a 563 percent increase in revenue to 1.96 billion ringgit from last year's 295.9 million ringgit.

Capital A Berhad previously announced that it carried 9.9 million passengers in the third quarter, a 2,200 percent increase from one year ago.

The company said in a filing that the group is taking all measures possible to return the grounded fleet back into service, with a projection of 140 operational aircraft by the end of the year, and full operations by the second quarter of 2023. Tony Fernandes, CEO of the company, said as part of a corporate restructuring designed to remove its status as a financially stressed firm, the company plans to combine its AirAsia budget airline business with its long-haul offshoot AirAsia X.