AirAsia, with a Capital A, Meets Pre-pandemic Fuel Efficiency Goals and Exceeds Sustainability Targets in its First Report

Published on May 11, 2024

Capital A achieved a significant milestone on its path to sustainability and achieving net zero emissions by successfully bringing its core airline operations back to nearly pre-pandemic levels of fuel efficiency and reduced carbon footprint. This achievement was highlighted in its inaugural sustainability report, where the Group shared that in 2023, AirAsia’s carbon intensity metrics fell below the levels seen in 2019, thanks to a fleet recovery of 75%. Moreover, with load factors peaking at 88%, AirAsia maintained an impressive on-time performance of 77%, leading to an increase in its Net Promoter Score (NPS) from 36 in 2022 to 52.

These accomplishments were among the key environmental, social, and governance (ESG) highlights in the Group’s latest disclosures. Specifically, the Group emphasized its environmental achievements, noting that its carbon emissions per available seat kilometer (gCO2/ASK) and carbon emissions per revenue passenger kilometer (gCO2/RPK) were at their lowest recorded levels. This reduction was largely attributed to operational efficiency measures that resulted in a total carbon avoidance of 129,469 tonnes, equivalent to savings of 41,000 tonnes in fuel and US$40 million in fuel costs. AirAsia’s outstanding performance in environmental sustainability was acknowledged with a Gold rating from the Centre for Aviation in its 2023 CAPA-Envest Global Airline Sustainability Benchmarking Report.

In waste management, the Group successfully processed over 1,000 tonnes of non-hazardous waste, diverting 49% of it away from landfills. Additionally, Santan, AirAsia’s inflight catering company, launched a comprehensive five-year packaging strategy focused on sourcing affordable biodegradable inflight food packaging and reducing food waste, with the aim of lowering food waste margins to 25% by 2024.

From an economic perspective, Capital A enhanced its sustainability governance by appointing sustainability advisers, including Tan Sri Dr. Jemilah Mahmood and Dr. Veerathai Santiprabhob, to its aviation arm. This move reflects the Group’s commitment to integrating sustainability into its core strategies.

Furthermore, Capital A continued its digital transformation by rebranding its Super App to AirAsia MOVE, introducing improvements to its user interface, and launching the AskBo AI chatbot for efficient handling of complex queries. The Group’s efforts in automating processes and increasing self-check-in solutions not only reduced paper usage by eliminating 200,000 paper boarding passes but also contributed to improved customer satisfaction, as reflected in the recovery of AirAsia’s NPS score.

In social disclosures, Capital A showcased progress in promoting diversity and inclusion, with an increase in the representation of women in leadership, STEM roles, and pilot positions. Additionally, the AirAsia Foundation resumed its grant-making activities, focusing on supporting social enterprises in ASEAN countries with an added emphasis on environmental initiatives aligned with UN Sustainable Development Goals.

Overall, Capital A’s achievements underscore its commitment to sustainability across environmental, social, and economic dimensions, positioning it as a leader in the aviation industry’s journey towards a more sustainable future.

Capital A’s Chief Sustainability Officer Yap Mun Ching said, “In 2023, we appointed Tan Sri Dr. Jemilah Mahmood and Dr. Veerathai Santiprabhob as sustainability advisors for our Aviation Business and welcome their stewardship as we accelerate our sustainability focus at Capital A and AirAsia.”

“This was the first year since 2019 that all AirAsia airlines have been able to fly uninterrupted by lockdowns. Getting aircraft that have been mothballed for two to three years back into tip-top shape remains challenging given a continued global shortage of skilled manpower, parts and maintenance slots. However, our aviation business units  – AirAsia, ADE and GTR – have all put in phenomenal effort, which we can now confirm with our results. ” 

“Beyond operational recovery, in 2023 Capital A prioritised diversity, equity and inclusion goals and the results are evident through the big strides we have recorded in increasing female representation across leadership and STEM roles.”

“Looking ahead, Capital A remains committed to raising the sustainability bar. Among others, we will be pursuing regulatory approvals for CORSIA offset management, regional expansion of our aviation sustainability campaign, and incorporating renewable energy at ADE’s maintenance facilities. At AirAsia Foundation, we look forward to expanding our partnerships for sustainable travel.”