Asia has become 'much, much smarter' in the way they handle further coronavirus outbreaks, which will help the region's aviation industry recover in a 'much more sustainable' way, said AirAsia CEO Tony Fernandes.
Faris Hadziq | SOPA Images | Getty Imagesthat cast doubt on AirAsia's future given the slump in air travel on the back of the pandemic. The company's shares plunged 17.5% after the release of the audit opinion.
Fernandes told CNBC the auditors gave "a very fair view" but reiterated that the airline is "well on the way" to raise the funds it needs to ensure its survival. He added that the funds could come in the form of a government loan, more equity issuance or debt. The amount the company is looking to raise is "a moving target," he said, adding that he'll "be very comfortable with a billion" ringgit and "super, super comfortable with 2 billion ringgit ."
The CEO also said as the airline resumes some of its flights, margins could be better compared to the pre-pandemic period. AirAsia has resumed around 50% of domestic flights in Malaysia and could soon restart flying to neighboring Singapore as both governments plan to allow travel between the two countries, according to Fernandes.
"Capacity is going to be reduced, fares are going to go up," he said. "In some ways, margins will be much better than pre-Covid. While capacity may take awhile to go back to pre-Covid, it's going to be much more profitable capacity."
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