AirAsia X submits application to exit PN17 status

From the onset of triggering suspended criteria under PN17 from July 30, 2020, AAX said it has undertaken a broad range of measures and corporate exercises to improve its financial position.

With the continued efforts, the company has managed to turn around its financial position from 12 quarters of losses since the quarter ended June 30, 2019 to registering three consecutive quarters of net profit for the quarters ended Sept 30, 2022, Dec 31, 2022 and March 31, 2023. It also recorded positive shareholders' equity as at March 31, 2023.

Based on its improved operating and financial performances, AAX no longer triggers any of the criteria prescribed under Paragraph 2.1 of PN17, particularly as AAX's shareholders' equity has turned positive while the external auditors have expressed a clean opinion of AAX's financial position.

In a statement today, AAX chief executive officer Benyamin Ismail said the company's operational and financial performances have been improving since April 2022, in line with the increasing demand across all core markets.

"Improved demand for travel has been evident in the last three quarters when we recorded passenger load factors of 73 per cent, 79 per cent and 80 per cent for the periods ended Sept 30, 2022, Dec 31, 2022 and March 31, 2023 respectively.

"We have managed to maximise the recovery of all of our revenue segments even though some of our fleet remain on the ground."

Benyamin said, as of March 31, 2023, AAX's cash position was healthy at RM192.37 million, without any outstanding debts, and it has sufficient working capital for 12 months.

"Additionally, with the recent completion of placement of an aggregate of 32.26 million new shares to AHAM Asset Management Bhd, AIIMAN Asset Management Sdn Bhd and Lavin Group Sdn Bhd at RM1.55 per share, we have raised net proceeds of about RM50.00 million, which strengthens AAX's equity position and ultimately granting it the platform to gradually reestablish a firm equity base.

"This is a strong testament that confidence in AAX is growing and future prospects are strong," he said.

Yesterday, AAX submitted an application to Bursa Malaysia Securities for relief from having to submit and implement a regularisation plan and uplifting it from being classified as an affected listed issuer under PN17 of the listing requirements.