KUALA LUMPUR, 29 July 2021: All four operating entities of
AirAsia posted year-on-year improvements during the second quarter of 2021, on
the back of a low base in the corresponding quarter last year.

The group’s fleet hibernated for most of the second quarter
of 2020 following the initial outbreak of the Covid-19 pandemic during the
first quarter of 2020.

AirAsia Group Berhad presented operating statistics for the
second quarter of the financial year 2021 on Tuesday.

As for quarter-on-quarter performance, AirAsia Philippines
progressed steadily with a 2% increase in passengers carried that gave the
airline four percentage points (“ppts”) increase in load factor to reach 78%.

AirAsia remains committed to strengthening its domestic
foothold while awaiting positive developments on international air travel.

“The expectation of high vaccination rates in ASEAN
countries by the end of this year is lending confidence on upcoming recovery,
enhanced by the group’s robust short-haul model in addition to leaner and more
stabilised operations,” the financial statement read.

AirAsia Malaysia’s operations remained constrained QoQ due
to a lockdown and interstate travel restrictions imposed from January 2021.

But the airline did carry 64% more passengers YoY on 54%
higher capacity, subsequently resulting in a four percentage point increase to
give it a  64% cabin factor. The ongoing
subdued operations are expected to persist until Malaysia reaches herd immunity
by the fourth quarter of this year. The government has recently set a new
target of vaccinating all adults by October 2021.

Aided by sustained operational momentum since 1Q2021,
AirAsia Indonesia posted YoY growth against the same quarter last year.

Though the number of passengers carried showed a 1% dip QoQ,
the load factor grew by 11 ppts to 67% in 2Q2021 due to more stringent capacity
management.

AirAsia Indonesia was operating approximately 70% of
pre-pandemic domestic capacity in May 2021 and demonstrated signs of recovery
before it hibernated operations in early July in support of the containment
efforts by the government as infection cases increased.

AirAsia Philippines’ rebound 1Q2021 continued in 2Q2021,
posting a 2% increase in passengers carried QoQ and four ppts higher load
factor to record a 78%. The monthly breakdown showed that the load factor was
as high as 83% in June 2021. This was despite running a limited number of
charter and passenger flights due to community quarantine restrictions and
despite flying only from its Manila hub.

AirAsia Thailand more than doubled its passengers carried
YoY. It achieved a 61% load factor up by nine ppts during 2Q2021. On a QoQ
basis, despite having resumed all domestic routes by the end of 1Q2021, AirAsia
Thailand’s recovery was short-lived due to the new Covid-19 wave that began in
mid-April 2021 and still rages. AirAsia Thailand posted a 26% QoQ decline in
passengers carried, most significantly in June. The load factor held firm at
78% in June, attributed to active capacity management.