AirAsia X continues to post losses
AirAsia X / Blom

by LYDIA NATHAN / pic by BLOOMBERG

THE full impact of the Covid-19 pandemic and suspension of scheduled flights in April 2020 pulled AirAsia X Bhd (AAX) into another massive loss for its third quarter (3Q) ended Sept 30, 2020.

The cash strapped carrier posted a net loss of RM308.4 million for the quarter, which took its total loss for the nine months to RM1.16 billion or 28 sen a share loss.

Revenue for the quarter shrank to RM59.9 million from RM1.01 billion it made for the same quarter last year, due to the cross border movement restrictions.

In a filing to Bursa Malaysia yesterday, AAX stated that the travel restrictions have grounded a majority of its fleet, making the performance indicators for its business not meaningful.

AAX plans to make an application for a government-guaranteed loan of up to RM500 million under the Danajamin Prihatin Guarantee Scheme, which will be subjected to credit assessment, final evaluation and approval from the relevant financial institutions.

“The plans are formulated with an aim to achieve an organised and systematic resolution to address the group’s current financial conditions. The validity of the going concern assumption is dependent on the ability to gradually resume scheduled flights operations on a staggered basis starting early 2021 and their ability to return to profitability,” the carrier stated.

Meanwhile, Mercury Securities Sdn Bhd on behalf of AAX announced that Bursa Securities vide its letter dated Nov 19, 2020, resolved to grant AAX an extension of time to submit the application for the Proposed Share Consolidation and the draft Circular to the shareholders of AAX.

AAX will have until Jan 6, 2021, to make this submission. AAX’s proposed debt restructuring wants the total outstanding amounts owing to the scheme creditors to be restructured and reconstituted into an acknowledgement of indebtedness by AAX for a principal amount of up to RM200 million, which is payable annually over a period of up to five years, via three equal payments from the third to the fifth anniversaries of the implementation of the proposed debt restructuring.

The company noted that the implementation of the scheme is currently ongoing and its success is critical to the ability of the company to raise new funding, either as debt or equity, and to continue as a going concern.

AirAsia group CEO Tan Sri Dr Tony Fernandes said the group intends to consolidate and strengthen its foothold in Asean, which could mean exiting its ventures in markets like Japan and India.


Read our earlier report

 

AirAsia X dented by Covid-19, border closures