Malaysia’s AirAsia X seeks creditors’ help as results plunge

AirAsia X (D7, Kuala Lumpur Int’l) has warned in its latest financial statements that its going concern status depends partly on its ability to obtain continued support from lessors, maintenance service providers, and financial institutions. The long-haul low-cost carrier posted on August 26 a net loss of MYR305.2 million ringgit (USD73.3 million) for the quarter ending June 30, compared to a net loss of MYR207.1 million (USD49.7 million) a year earlier. Revenue dropped by 91% to MYR91.4 million (USD21.9 million) as it “remained in hibernation throughout 2Q20” and “is expected to remain in hibernation mode in the near term,” it said in a statement accompanying the results. In the quarterly report itself, AirAsia X said it “continues to face severe liquidity constraints” and “continues to seek payment deferrals and concessions from our suppliers, lessors, and lenders.” Further payroll reductions will be implemented over the next month to reflect the low level of operations, it added. The ability of the company to continue in business “is dependent on the ability of [parent AirAsia Group] and the company to gradually resume scheduled flight operations on a staggered basis starting early 2021,” it said. AirAsia Group reported its biggest quarterly net loss on August 25, at MYR1.2 billion (USD288 million), compared to a MYR47 million (USD11.3 million) profit for the same period last year. But it said its airline business had stabilised, supported by Malaysian domestic services separate from AirAsia X.