AirAsia X Plans Capital Raising Following Exit from PN17 Status

AirAsia X (D7), the long-haul low-cost carrier, is considering raising fresh capital after successfully exiting Bursa Malaysia PN17 status. CEO Benyamin Ismail stated that actively seeking capital is a top priority for the airline, and the move presents new opportunities to explore loans from banks.

The airline’s PN17 status was lifted on November 21, 2023, after a successful appeal against the stock exchange’s earlier decision to maintain the status. A PN17 notice is issued to listed companies considered financially distressed, requiring them to address financial issues within a specified timeframe or risk delisting.

Ismail highlighted the challenges posed by high fuel costs and a devalued ringgit but expressed confidence in the airline’s improved financial and operational standing. With the removal of PN17 status, AirAsia X aims to engage more effectively with lenders for financial support.

Additionally, Ismail emphasized the positive impact of the Malaysian government’s decision to eliminate visa requirements for Indian and Chinese nationals. He sees this move as a significant opportunity for increased air traffic and tourism in Malaysia, benefiting both the country and AirAsia X.

AirAsia X, operating a fleet of seventeen A330-300s, serves 24 destinations across 13 countries, according to ch-aviation PRO airlines data. The airline did not respond to a request for comment on its capital-raising plans.