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AirAsia seeks to leave distressed financial status as finances improve

AirAsia X Bhd, the long haul budget carrier, has requested to be delisted from the financially distressed category on Bursa Malaysia. This move comes after the airline reported three consecutive quarters of profit and positive shareholders’ equity.

Additionally, AirAsia X has also urged the exchange to exempt them from submitting a regularisation plan, which was initially due by July 28, and to remove the Practice Note 17 status that was assigned to them by Bursa in 2021.

Like many other airlines in the Asia Pacific region, AirAsia X faced significant challenges due to the Covid-era travel restrictions. However, the company’s financial performance has shown significant improvement since the pandemic, primarily due to its debt recast plan and the recovery in global travel. As a result, the airline’s shares have surged threefold in the current year.

In a statement, Chief Executive Officer Benyamin Ismail mentioned that AirAsia X’s cash position stands at a healthy 192.37 million ringgit, with no outstanding debt, and the company has sufficient working capital to cover the next 12 months, as of March 31.

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