KUALA LUMPUR: AirAsia X Bhd posted a massive RM24.6bil net loss in the three-month ended June 30, the long haul budget airline's nine straight quarterly losses.
Revenue during the quarter was RM72mil.
"The Company has made a provision of RM23.8bil in the current quarter though it should be highlighted that the contractual liabilities for which the provision is made will be waived upon a successful completion of the proposed debt restructuring exercise," AirAsia X said in a filing today.
On Sept 15, the High Court of Malaya has granted an order for an extension of time until March 17, 2022 for AirAsia X to convene the meeting of the creditors for the purpose of considering and, if thought fit, approving with or without modification the proposed debt restructuring.
"The Company continues to make good progress in negotiations with it's creditors and hopes to hold the meeting by the end of October 2021," the airline said today.
AirAsia X has obtained its shareholders's approval in June to raise fresh funds, which the company said will start "upon a successful outcome from the Scheme of Arrangement being proposed at the upcoming creditors meeting."
The planned fund-raising exercise involved a rights issue and a share subscription for new investors to raise RM500mil. AirAsia X also said it is planning to apply for a government guaranteed loan of up to RM500mil.
AirAsia X at the end of last year, changed its financial year end from Dec 31 to June 30.
As part of the Group’s plans to return to profitability, AirAsia X said it would focus in core markets to improve yield. AirAsia X said it plans to operate a leaner fleet size, which means it would have to return excess aircraft to the aircraft lessors.
"At present, the Group and the Company have successfully returned one aircraft and are in discussions with the other aircraft lessors to achieve the optimal fleet size," it said.
"The Group and the Company are also in discussions with the aircraft lessors to reduce future lease rental rates. Further, the Group and the Company are also in discussion with maintenance service providers to reduce future maintenance costs," it added.