AirAsia X Soars as Bursa Malaysia Lifts PN17 Status Following Profitable Quarter

In a significant development for AirAsia X (D7), the low-cost long-haul carrier has successfully exited PN17 status as confirmed by a Bursa Malaysia filing on November 21. This move marks the end of the airline’s inclusion in the stock exchange’s intensified supervision regime, effective from the start of business on November 22.

Just a month prior, Bursa Malaysia had initially declined to lift AirAsia X’s PN17 status, a designation reserved for listed entities facing financial distress. The notice urged them to reorganize their finances and devise a regularisation plan to avoid delisting. The PN17 status was imposed on the carrier in October 2021 following a disclaimer of opinion by auditors Ernst and Young in the financial statements.

AirAsia X’s successful appeal hinged on the announcement of an after-tax profit attributable to the equity holders of MYR5.6 million ringgit (USD1.2 million) in its latest quarterly results. This positive financial outcome played a crucial role in persuading Bursa Malaysia to lift the PN17 status, as stated in the filing.

“Substantial efforts were dedicated to this very result,” emphasized Mahmood Fawzy, AirAsia X’s Chairman, regarding the Bursa Malaysia decision. “AirAsia X was a PN17 company for more than two years, and colossal efforts were made; we completed a debt restructuring exercise amid a global lockdown. Moving forward, we are very excited about the new opportunities this upliftment will present to the company.”

AirAsia X’s financial performance has been impressive, with five consecutive quarterly profits. As of September 30, the carrier’s cash balance stood at MYR119.6 million (USD25.5 million), reflecting a 2% improvement from the second quarter figure. Additionally, shareholders’ equity increased by 6% to MYR102.5 million (USD21.9 million) during the same period.

Looking ahead, AirAsia X has ambitious plans to expand its fleet, aiming to increase the number of operational A330-300s to 17 by the end of the year. Currently operating flights to 20 airports from its Kuala Lumpur hub, the airline provides over 110 weekly flights, showcasing its commitment to growth and financial stability.