AirAsia seeks to exit financially distressed status as finances improve

21 July 2023

Long haul budget carrier AirAsia X Bhd. has applied to Bursa Malaysia to be removed from the exchange’s financially distressed status after reporting three straight quarters of profit and positive shareholders’ equity.

AirAsia seeks to exit financially distressed status as finances improve

AirAsia X Bhd in a statement Friday also asked the bourse to exempt it from the need to submit a regularization plan, which was due by July 28, and to scrap the so-called Practice Note 17 status it was accorded by Bursa in 2021.

AirAsia X was among several airlines in the Asia Pacific region to have been hit by the Covid-era travel restrictions.

The company’s financial performance has improved since the pandemic, thanks to its debt recast plan and the rebound in global travel. Its shares have tripled so far this year.

“AAX’s cash position is healthy at 192.37 million ringgit, without any outstanding debt, and has sufficient working capital for 12 months” as of March 31, Chief Executive Officer Benyamin Ismail said in the statement.

The company recently raised 50 million ringgit selling shares to investors including AHAM Asset Management Bhd., AIIMAN Asset Management Sdn. and Lavin Group Sdn., strengthening its equity position, he said.

READ: AirAsia X Risks Delisting After Financially-Distressed Status

The Sepang, Selangor-based company is the offshoot of Capital A, which operates Southeast Asia’s biggest budget carrier AirAsia.

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