KUALA LUMPUR: Malaysia's AirAsia X Bhd on Monday posted a record quarterly loss of $5.9 billion, eight times more than a year ago, as a multi-billion-dollar provision to cover debts drove operating costs higher.
It was the ninth loss in succession for the airline, an affiliate of AirAsia Group Bhd.
The net loss for the April-June period widened to 24.6 billion ringgit ($5.88 billion), from a 305.2 million ringgit loss a year ago.
The airline said it made an accounting provision of 23.8 billion ringgit to its creditors during the quarter as it is in default under the contract terms.
Revenue dropped 20.9% to 72.3 million ringgit, versus 91.4 million ringgit.
In a stock exchange filing, it said the impact of the provision should be temporary.
"The contractual liabilities for which the provision is made will be waived upon a successful completion of the proposed debt restructuring exercise," it said.
To reduce costs, the airline group plans to operate a reduced fleet and return excess aircraft to the lessors. It said it has returned one aircraft and is in discussions with other aircraft lessors "to achieve the optimal fleet size".
Discussions to reduce future lease rental rates are ongoing, as are talks with other service providers to reduce maintenance costs.
The airline, which is looking to convene meetings with creditors to propose a restructuring scheme by the end of October https://www.reuters.com/business/aerospace-defense/with-progress-creditor-talks-malaysias-airasia-x-targets-end-oct-meetings-2021-09-17, proposed last October to restructure its 64.15 billion ringgit debt into a principal amount of 200 million ringgit.
It said it is making good progress in negotiations.
The implementation of a fund-raising exercise involving a rights issue and a share subscription for new investors to raise 500 million ringgit, will start provided the upcoming creditors' meeting approves it, it said.
AirAsia X also plans to apply for a government guaranteed loan of up to 500 million ringgit, it said.
The group at the end of last year changed its financial year end from Dec. 31 last year to June 30 this year.
Reuters
Mon Sep 27 2021
It was the ninth loss in succession for the airline, an affiliate of AirAsia Group Bhd. - Filepic/REUTERS
Putin says Russia willing to seek compromises between Iran and Israel
Russia is ready to help seek compromises between arch-foes Israel and Iran, President Vladimir Putin said on Friday, saying these would be difficult but possible.
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.
NFOF will be operational in November 2024 with funding of RM1 bil
PM Anwar Ibrahim said NFOF will support venture capital fund managers to invest in startup companies with RM300 million set aside for 2025.
Minimum wage to increase to RM1,700 effective Feb 1, 2025
The Progressive Wage Policy would be fully enforced next year with an allocation of RM200 million, benefiting 50,000 workers.
Bursa Malaysia ends higher on Budget 2025 optimism
The benchmark index, which opened 1.85 points higher at 1,643.29, moved between 1,641.71 and 1,649.31 throughout the trading session.