Capital A is making waves in the airline industry with the consolidation of its airline group, comprising AirAsia Malaysia, AirAsia Thailand, AirAsia Philippines, and AirAsia Indonesia, under the AirAsia Aviation Group. The group has activated 157 aircraft, with 142 operating and 15 as spares. Thanks to the increased operating aircraft and robust travel demand, passenger traffic reached 13.2 million, signifying a 153% year-on-year growth and an 11% quarter-on-quarter increase. The group operated 14.8 million seats, 71% of 1st quarter 2019 levels, with a load factor of 89%, comparable to pre-pandemic levels.
International Travel Demand Drives Growth
The aviation segment is experiencing strong growth toward a full recovery, fueled by sustained demand for international travel and the reopening of China. The group relaunched nine China destinations, with Guang Zhou and Shen Zhen seeing the highest number of passengers carried. Overall, load factor for China’s routes was 84%, accounting for 2.5% of total international passengers. This consistent international demand led all airlines to increase international capacity by 21%, while domestic market capacity slightly improved by 2% quarter-on-quarter.
Individual Airline Successes
AirAsia Malaysia’s quarterly load factor improved to 88%, a 1 percentage point increase from 4Q2022 and 1st quarter of 2019. The airline carried 2.3 million international passengers, a 17% quarter-on-quarter surge, driven by a 19% increase in international capacity. The Kuala Lumpur-Singapore route contributed more than 10% of the total international passengers carried. Even with a 1% quarter-on-quarter drop in domestic capacity, passengers carried grew by 3%, resulting in a 92% load factor and reaching nearly 75% of pre-pandemic levels.
AirAsia Thailand maintained an impressive record with the highest quarterly load factor of 92%, a 2 percentage point increase quarter-on-quarter. China’s routes achieved a remarkable 90% load factor. As a popular destination for international travelers, the airline sold 26% more international seats than the previous quarter, reaching 59% of 1st quarter 2019 levels. Meanwhile, domestic sales also increased by 8% quarter-on-quarter, reaching 92% of pre-Covid levels.
AirAsia Indonesia posted a healthy 81% load factor in the first quarter, up by 3 percentage points quarter-on-quarter. The airline flew 8,375 flights, carrying 1.2 million passengers, with 69% flying to international destinations. AirAsia Indonesia recovered the most in the sale of its international seats, reaching 70% of its pre-Covid level.
AirAsia Philippines’ recovery is progressing well, with the number of flights, seat capacity, and passengers carried recovering to between 83% and 84% of pre-pandemic levels. The airline achieved a remarkable load factor of 92%, which, along with AirAsia Thailand, marked the highest load factor within the Consolidated Airlines in the 1st quarter of 2023.
Capital A’s consolidation of its airline group under the AirAsia Aviation Group has led to impressive load factors and robust travel demand. As international travel demand continues to drive growth, the future looks bright for the AirAsia Aviation Group.
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