21-11-2023 (KUALA LUMPUR) AirAsia X, the budget airline based in Malaysia, received relief on Tuesday as the country’s stock exchange communicated that the airline is no longer considered financially distressed, thereby removing the risk of potential de-listing.
Both AirAsia X and its parent company, Capital A, faced substantial losses during the pandemic-induced downturn in demand. In response, they have been actively seeking ways to secure funding and stabilize their financial standing.
Last year, Bursa Malaysia Securities had classified AirAsia X as a PN17 entity, indicating a financially distressed status. Companies falling under this classification risk de-listing if they cannot stabilize their finances within a specified timeframe.
In July, AirAsia X formally requested the exchange to revise its classification, citing a series of strategic measures to enhance its financial position. These measures included debt restructuring, share consolidation, and a reassessment of its business plan.
On Tuesday, the stock exchange confirmed that AirAsia X has fulfilled the conditions for the “waiver and upliftment” from the PN17 classification.
In a separate development, AirAsia X reported a nearly 78% decline in its quarterly attributable profit, amounting to 5.6 million ringgit.
