Malaysian long-haul budget carrier AirAsia X's net loss widened by 82% in the fourth quarter, because of the COVID-19 pandemic, the company said in a stock exchange filing on Friday.
The airline recorded 174.3 million ringgit, i.e., USD 43.06 million, in losses for the October-December period, compared with 95.8 million ringgit in the same quarter a year ago, the company said.
In addition, Revenue plunged 95% to 54.7 million ringgit. AirAsia X, an affiliate of AirAsia Group, is seeking a restructuring of its debt.
The airline intends to raise up to 500 million ringgit via new equity funding from existing and new investors to provide sufficient capital to restart operations when international borders reopen. The proposed fundraising exercise, however, is dependent on the restructuring plan succeeding.
Notably, A Malaysian court this week granted it leave to convene meetings with creditors to vote on a plan to reconstitute 64.15 billion ringgit of debt. "This decision by the court to allow the company to seek concessions from its creditors represents an important step forward in the restructuring process," AirAsia X said.
About the Company, AirAsia X Berhad, operating as AirAsia X, is a long-haul budget airline based in Malaysia, and a sister company of AirAsia. It commenced operations on 2 November 2007 with its first service flown from Kuala Lumpur International Airport, Malaysia, to Gold Coast Airport in Australia.