(Reuters) – As AirAsia Bhd grapples with its first airliner disaster since its founding a dozen years ago, Asia’s biggest budget carrier will have little margin for error given tough competition and thin profits in the sector.
Even before an Indonesia AirAsia flight went missing on Sunday night with 162 on board, presumed to have crashed off the Indonesian coast, affiliates in Thailand and the Philippines as well as its long-haul unit were posting losses while its Indonesian unit eked out only a tiny profit in the latest quarter.
Several analysts believe the incident could deter some passengers from using the airline, at least in the short term, with an outsized impact on its bottom line.
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