PT AIRASIA Indonesia Tbk. (CMPP) recorded an increase in operating expenses throughout 2023 of 43.79% to IDR7.33 trillion, in line with rising aviation fuel prices and the depreciation of the rupiah exchange rate.

According to AirAsia Indonesia President Director Veranita Yosephine Sinaga, said the company’s operating expenses increased by 43.79% or IDR2.23 trillion compared to 2022, which was IDR5.10 trillion. Operationally, CMPP will incur a loss of IDR702.62 billion in 2023 or a total loss of IDR1.08 trillion after adding the financial burden and taxes recorded by the company.

“The increase in operating expenses is mainly due to the increase in fuel costs in line with the increase in aviation fuel prices and the depreciation of the rupiah exchange rate. The increase in the number of aircraft to meet the growing demand also has an impact on the increasing fuel consumption,” she said in an official statement recently.

AirAsia Indonesia recorded a 75.24% year-on-year (y-o-y) increase in revenue to IDR6.62 trillion for the full fiscal year ending December 31, 2023.

However, Veranita believes that the aviation industry has recovered from the COVID-19 pandemic and the entire Indonesian aviation industry is starting to recover from its downturn. This is evidenced by a significant increase in revenues throughout 2023.

This increase will be supported by 24 aircraft in operation in 2023. Apart from this, AirAsia Indonesia also recorded an increase in passenger load factor to 85% compared to 79% in the previous year. The number of passengers was recorded to have increased by 90.27% to reach 6.18 million passengers from 3.24 million passengers in 2022.

Veranita concluded that as of April 2024, AirAsia Indonesia also operates 33 routes, including 12 domestic routes and 21 international routes, covering routes in the ASEAN region and Australia. This supports the Indonesian government’s efforts to improve air connectivity and make it easier for passengers to travel to various destinations at affordable prices.

On the other hand, based on the report, AAID/CMPP assets were recorded at IDR6.12 trillion in 2023, growing 14.17%, while AAID/CMPP liabilities reached IDR 14.02 trillion, growing 15.17% year-on-year (yoy).  [sources/photo special]