The Survival of Airasia During the Covid-19 Pandemic

Abstract

This research is to investigate the survival of AirAsia during the pandemic Covid-19. The findings will show how AirAsia faced challenges during the pandemic and ways to overcome them. This research underlined the challenges faced by AirAsia such as flight cancellation, decrease in demand, loss of new customers, and paying huge amounts of refunds. AirAsia used several ways such as controlling the operational cost, exploring new business, carrying out promotions, and applying for bank loans and weighing proposals. As a result, AirAsia’s financial problems would be solved by reducing operational costs and increasing the profit from other businesses.

How Does AirAsia Survive From the COVID-19 Pandemic?

“…In terms of earnings before interest tax depreciation amortization (EBITDA), AirAsia was reported at a positive value of RM 1.7 billion in 2019 meanwhile negative value of EBITDA was made known in 2020 with approximately RM 3.2 billion (AirAsia Group Berhad, 2021b). According to research by Reddy et al (2021), AirAsia had to cancel flights temporarily and compensate passengers during the pandemic caused them to suffer more losses in terms of profit. As of September 2021, AirAsia reported revenue of RM296 million for the third quarter of 2021 which is a year-on-year decrease of 37% and a quarter-on-quarter decrease of 20% (AirAsia Group Berhad, 2021c).…”