AirAsia X Bhd (AAX), following a marked turnaround in its financial performance, has reached out to Bursa Malaysia Securities Bhd for an exemption from the requirement to submit a proposed regularisation plan. In the wake of this remarkable recovery, the airline also seeks to uplift its classification as a Practice Note 17 (PN17) affected listed issuer.
The story of this turnaround traces back to July 30, 2020, when AAX was first classified under suspended criteria of PN17. Since then, the company has undertaken a comprehensive set of measures and corporate strategies to bolster its financial status.
From enduring 12 quarters of losses ending June 30, 2019, AAX remarkably shifted gears, recording three straight quarters of net profit ending March 31, 2023. This financial pivot also led to positive shareholders’ equity as of March 31, 2023.
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Given the significant improvement in both operating and financial performances, AAX no longer falls under any of the criteria stipulated under Paragraph 2.1 of PN17. A critical indicator of this progress is the company’s positive shareholders’ equity and the external auditors’ unqualified opinion on AirAsia X’s financial standing.
Benyamin Ismail, the Chief Executive Officer of AAX, said in a statement that the company’s financial and operational performances had been on an upward trend since April 2022. This positive trajectory aligns with growing demand across all their core markets.
The airline experienced a noticeable surge in travel demand over the last three quarters, registering passenger load factors of 73%, 79%, and 80% for the periods ending in September 30, 2022, December 31, 2022, and March 31, 2023, respectively.
Ismail elaborated, “Despite some of our fleet remaining grounded, we managed to optimize the recovery across all our revenue segments.” As of March 31, 2023, AAX’s cash position was robust at RM192.37 million, without any outstanding debts, and it held adequate working capital for 12 months.
The company recently completed placement 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. This move raised net proceeds of approximately RM50.00 million, fortifying AAX’s equity position and providing the framework to gradually build a solid equity base.
“This strongly attests that confidence in AAX is growing and future prospects are robust,” Ismail concluded.
In a recent development, AirAsia X has submitted an application to Bursa Malaysia Securities, seeking relief from the requirement to submit and implement a regularisation plan and seeking to uplift its classification as an affected listed issuer under PN17.
Based on Malay Mail.
