MANILA, 6 January 2022: AirAsia Philippines expanded its
domestic market share to19% in 2021, climbing 3.5 notches up from its 15.5%
share in 2019.

The low-cost airline has also peaked at 95% load factor over
the course of the recent holiday period while ending December at 88% – both
record-high figures over the past 1.5 years.

In December, AirAsia Philippines ranked third most popular
airline in terms of flight bookings among AirAsia territories, following
Malaysia and Thailand.

The past year came with its own set of challenges – from new
Covid-19 variants to stricter travel restrictions. However, the airline showed
resilience throughout the year through strategic mitigation strategies that
included new revenue streams, budget management and diversification of
offerings. The airline mounted 619 charter repatriation flights and reunited
50,000 people with their families and loved ones. This has helped defray upkeep
costs to ensure the viability of the company.

AirAsia also observed that domestic travel is gaining
stronger momentum during the last quarter of 2021, primarily because of the low
positive infection rate and daily case count. In the first half of the year,
the majority of airline bookings were done within three days, mainly for
essential travel. But recently, the airline has witnessed a significant
increase in bookings for travel 1 to 3 months in advance  –  a
telltale sign of growth in leisure travel and more substantial consumer
confidence. AirAsia Philippines also recorded a 15 to 20%  increase in bookings for near-term travel
within 30 to 60 days over recent times.

AirAsia has also resumed its flight operations to Hong
Kong,  Singapore and Kuala Lumpur,
Malaysia, servicing Overseas Filipino Workers and business travellers in these
countries.

A Look at 2022

There is strong pent-up demand for travel, and Filipinos are
ready to get back in the air. And compared to the previous two years, all
stakeholders – airlines, government units and customers – are now much more
conscious of the critical strategies and measures needed to properly approach
travelling amid the pandemic. The country is now better equipped to face new
variants and potential surges.

AirAsia is also closely monitoring the impact of the
Covid-19 Omicron variant and has adopted three specific priorities.

They focus on:
Cash availability and management to support recovery strategies; Sustainable cost management and rationalisation to operate commercial flights and staff-related costs, marketing and other operating costs; Expansion of the domestic network from 14 destinations (2021) to 18 (2022) and to grow regional routes by exploring opportunities in the Middle East, United States and Australia.