Quick take: AAX falls on record net loss

KUALA LUMPUR: AirAsia X Bhd (AAX) fell over 5% in early trade after posting a record net loss in the April-June 2021 period.

The long-haul budget airline fell 5.56%, or 0.5 sen to 8.5 sen at 9.49am. The counter has risen some 50% in the past one year.

AAX posted its biggest quarterly net loss of RM24.6bil net loss in the three-month ended June 30. Revenue during the quarter stood at RM72.2mil.

For the 18 months from Jan 1, 2020 to June 30, 2021, AAX saw its net loss come in at RM31.63bil on revenue of RM1.24bil.

AAX has changed its financial year from Dec 31 to June 30.

PublicInvest Research said AAX’s cumulative 18MFY21 core net loss of RM1.84bil was ahead of estimates, making up 93.4% and 94.4% of the house and consensus 18-month net loss estimates respectively.

The research house said AAX continued to face severe liquidity constraints and all hopes are on a successful debt restructuring and new equity funding exercise from existing and new investors to provide sufficient capital to restart operations when international borders reopen.

“The group is still in the midst of its debt restructuring process and is looking to raise new equity funding to provide sufficient capital to restart its operations when international borders reopen.

“We keep estimates unchanged at this juncture pending completion of its restructuring exercise and retain our ‘underperform’ call on AAX with a target price of 1 sen,” PublicInvest said.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

AirAsia X , AAX ,


Next In Business News

Mah Sing completes RM300mil Sukuk issuance
MITEC reopens facilities as business events resume
Tenaga completes purchase of Blyth from EDF Renewables
Vegetable oil production set to hit 4-year high leading to fall in prices
Robust growth ahead for silicon wafer shipments until 2024
Credit Suisse to pay at least US$400m in Mozambique scandal
George Kent to focus on opportunities in railway space
Thai AirAsia parent seeks to raise US$540m in fresh capital
Bintai Healthcare to distribute Scientillence’ hemodialysers
Bank stocks stay positive amid negative market breadth

Others Also Read