Airasia — Airlines policy on refund when the flight is delayed

My AirAsia flight was delayed by about 2 hours. I got an email about that, and had to book another flight so that I can make it in time to an international flight. When I asked AirAsia for a refund of my ticket due to the flight delay, they denied the request, and refunded only the airport fees. Apparently, if someone doesn’t travel on the flight despite the delay on the airline’s fault, they are considered a ‘no-show’. I also paid excess baggage fees which was not refunded either. This is a truly appalling airline policy. I can’t believe the airline can get away with treating its patrons this way.