The LCC attributes the major losses to the parking of the majority of its aircraft fleet as quarterly revenue plunges 95.8%

by SHAHEERA AZNAM SHAH / pic by MUHD AMIN NAHARUL

AIRASIA X Bhd (AAX) reported its largest quarterly net loss of RM5.67 billion for the first quarter ended March 31, 2021 (1Q21), against RM549.71 million in the first three months last year as it suffered from the full impact of the Covid-19 pandemic, coupled with the suspension of scheduled flight operations in April 2020.

It attributed the major losses to the parking of the majority of its aircraft fleet as quarterly revenue plunged 95.83% year-on-year (YoY) to RM38.49 million.

AAX has changed its financial year-end to June 30 from Dec 31.

In a filing to Bursa Malaysia yesterday, AAX stated it is confident its capital-raising exercise could provide sufficient funds to restart its operations when international borders reopen.

The low-cost carrier (LCC) added that it remains confident of a successful outcome from the scheme of arrangement which is being proposed at the creditors meeting.

The long-haul carrier is planning a RM500 million fundraising exercise, which it intends to help provide a further discount to its rights issue price in order to encourage the take-up of the cash call.

The fundraising exercise entails the cash-strapped carrier raising up to RM300 million through a cash call from its existing shareholders and up to RM200 million from a placement exercise for new investors.

The exercise is on top of a share capital reduction exercise and a proposed restructuring of some RM2 billion in liabilities, AAX said.

“The fundraising exercise will provide sufficient capital to restart operations when international borders reopen and remains dependent on a successful outcome from the scheme of arrangement being proposed at the creditors meeting,” it stated in a bourse filing.

The carrier’s aircraft fuel expenses came in at a deficit during the period at RM4.42 million, while its maintenance and overhaul stood in a shortfall of RM102.59 million.

Staff cost for the period came in at a deficit of RM11.59 million, while the aircraft operating lease expenses came in at a deficit of RM1.08 million.

AAX’s share price closed at seven sen, 0.5 sen or 6.67% lower yesterday, taking its market capitalisation to RM272.22 million.