SEPANG: AirAsia is set for a strong financial year in 2025 driven by strong recovery, strategic expansion and operational efficiencies.
AirAsia Aviation Group Ltd group chief executive officer Bo Lingam said over 30 new routes will be introduced this year to strengthen ASEAN and domestic connectivity, thus reinforcing its position as the region's leading low-cost airline.
"This year, as we return to full capacity, we will be balancing growth with profitability. Our network strategy will prioritise strategic and demand-driven connectivity across Asia," he said at a media briefing here today.
Furthermore, he said, the airline expects to operate a fleet of 234 narrowbody aircraft this year across the group's five short-haul airlines, restoring full pre-pandemic capacity.
"Only 16 aircraft remain to be reactivated, while 14 new aircraft deliveries have been confirmed for 2025, four from Airbus and 10 via lessors," he said.
Bo said the group's vision is to make Kuala Lumpur at par with Dubai as a busy and world-class aviation hub.
Asked on additional new aircraft, he said discussion is ongoing actively with three manufacturers - Airbus, Embraer and Comac.
He said the decision is likely in June this year, to ensure technical specifications of single-aisle aircraft are efficient to serve AirAsia's routes.
In December last year, Capital A Bhd
's chief executive officer Tan Sri Tony Fernandes was reported as saying AirAsia was looking to expand its fleet with at least 100 new aircraft to supplement its Airbus A321s.
Bo said AirAsia's network optimisation is also expected to be completed by the second quarter this year, with frequency increases across high-demand routes beginning in the same period.
"In parallel, the group is evaluating new routes to meet growing intra-Asia travel demand driven by easing visa initiatives across key markets including China, India, Thailand and Malaysia, aligned with evolving travel trends," he added.
Bo said AirAsia is responding directly to market demand and Fly-Thru opportunities with over seven million Fly-Thru guests targeted this year from 4.3 million in 2024.
He said Fly-Thru is likely to be contributing 10 per cent of passengers this year via leveraging Thailand's Don Mueang International Airport (DMK) and Kuala Lumpur as key hubs and maximise traffic from North Asia, Australia, Central Asia and Middle East.
"Our mega hubs in Kuala Lumpur (KUL) and Bangkok-Don Mueang (DMK) will continue to anchor Fly-Thru growth, currently handling 95 per cent of Fly-Thru traffic.
"At the same time, we will expand other hubs and look forward to adding over 1,700 weekly return flights and 323,336 weekly seats across the group by the end of 2025,” he said.
Meanwhile, deputy group chief executive officer Farouk Kamal said AirAsia is exploring refinancing options to reduce interest costs on its US dollar-denominated debt, which currently stands at around 11 to 12 per cent.
He said by securing financing from domestic banks, the rate is expected to be lowered to seven to eight per cent.
Farouk said the move will result in significant interest cost savings for the group, adding that the financing will be obtained through domestic banking institutions, including the potential issuance of domestic bonds. - Bernama
