AirAsia Indonesia sees significant reduction in losses for 2022

AirAsia Indonesia Narrows Losses in 2022 Despite Covid-19 Uncertainties.

AirAsia Indonesia and its subsidiaries have reported an operating loss of Rp1.32 trillion ($88.3 million) in 2022, a significant improvement from the Rp1.68 trillion loss in 2021. According to a filing to the Indonesia Stock Exchange, the company's operating revenue increased by 504% to almost Rp3.78 trillion, with flight operations generating Rp3.28 trillion in revenue while ancillary and other revenue came in at nearly Rp498 billion.

Despite the revenue increase, operating expenses rose by 121% to almost Rp5.1 trillion. However, the loss for the year decreased from Rp2.35 trillion to Rp1.65 trillion year on year. The company's cash on hand increased from Rp21.1 billion to Rp26.7 billion, but its consolidated current liabilities exceeded its consolidated current assets by Rp7.17 trillion as of 31 December.

AirAsia Indonesia acknowledges the uncertainties surrounding its ability to continue as a going concern due to the Covid-19 pandemic's impact. The company is working with Capital A, formerly AirAsia Group, to renegotiate costs and restructure outstanding liabilities with vendors, including aircraft vendors, and is seeking additional grace periods from current creditor CIMB Niaga on loan repayments.

Moreover, AirAsia Indonesia is proactively exploring external funding opportunities to improve its capital and enhance its financial and operational agility.

Despite the challenges, AirAsia Indonesia's narrowed losses in 2022 suggest a positive growth trend, indicating the company's resilience and potential for recovery.