AAX posts record RM24.6b net loss

This is following the impact of Covid-19 pandemic and suspension of scheduled flight operation since April 2020 

by NUR HAZIQAH A MALEK / pic by TMR FILE

AIRASIA X Bhd (AAX) posted a net loss of RM24.63 billion for the three months ended June 30, as the cash strapped low-cost carrier suffered from the full impact of the Covid-19 pandemic and suspension of scheduled flight operation since April last year. 

The massive loss for the quarter was primarily due to provisions for the amount payable to creditors amid its ongoing restructuring negotiations with various stakeholders. 

AAX posted a revenue of RM72.26 million for the period despite having to suffer from the parking of the majority of the aircraft fleet due to the restrictions on travel. 

The tabular presentation of revenue and cost metrics in the quarter was not included in its consolidated results for the other quarter, as there is no like-for-like comparison to the same quarter of 2020. 

This follows the announcement made on Dec 2, 2020, whereby the financial year of the group has been changed from Dec 31, 2020, to June 30, 2021. 

For the year-to-date period, the group’s net loss stands at RM31.63 billion or loss per share of RM7.626 on the back of RM1.24 billion in revenue. 

In its exchange filing yesterday, AAX stated that it had previously been granted leave to convene its creditors to vote on the proposed scheme of arrangement on Feb 19, 2021. 

On Sept 15, 2021, the High Court granted an order for, among others, an extension of time until March 17, 2022, for the company to convene the meeting of the creditors for the purpose of considering and, if thought fit, approving with or without modification the proposed debt restructuring. 

“The company continues to make good progress in negotiations with its creditors and hopes to hold the meeting by the end of October,” it noted. 

With regard to the fund-raising exercise announced to Bursa Malaysia on Dec 14, 2020, AAX shareholders approved all of the proposals at the EGM held on June 1, 2021, and the implementation of the fundraising exercise will commence upon a successful outcome from the Scheme of Arrangement being proposed at the upcoming creditors meeting, it added. 

AAX shares closed the trading day up half a sen to nine sen, giving it a market capitalisation of RM352.6 million.