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AirAsia X posts record quarterly loss
September 28th 2021
Malaysia’s AirAsia X has posted a record loss of RM24.62 billion ($US5.9 billion) for the quarter ended June 30. Read More » It was the long-haul low-cost carrier’s ninth consecutive quarterly loss as the suspension of scheduled operations due to COVID-19 slashed revenue to RM72.3 million. A statement filed on Bursa Malaysia said the loss included creditor provisions of RM23.8 billion but emphasized this commitment would be waived upon successful completion of the company’s proposed debt restructuring. The High Court of Malaysia has given AirAsia X until mid-March 2022 to convene a meeting of creditors to consider the proposed restructuring. The company hopes to hold the meeting by the end of October. The filing revealed the company plans to apply for a government guaranteed loan of up to RM500 million under the Danajamin PRIHATIN Guarantee Scheme and that it is in discussions with a financial institution to secure the credit facility. The company’s plans for a return to profitability include a focus on mature routes and core markets with historically proven demand and termination of unprofitable destinations. It will result in a leaner fleet, the LCC said, but require the return of excess aircraft to lessors. “At present, the group and the company have successfully returned one aircraft [and] are in discussions with other aircraft lessors to achieve the optimal fleet size,” the statement said. The talks will include reduced lease rates. “Further, the group and the company are in discussions with maintenance service providers to reduce future maintenance costs.” A separate stock exchange filing announced company secretary, Tham Wai Ying, had resigned.
