Malaysia's AirAsia X posts larger loss as revenue hit by virus curbs

KUALA LUMPUR (Reuters) - Long-haul carrier AirAsia X Bhd posted on Thursday a wider quarterly loss on reduced revenue, hit by coronavirus travel curbs, and added it was keeping up restructuring efforts key to its ability to raise new funding and survive. The company reported a net loss of 308.5 million ringgit ($75.32 million) for the quarter that ended in September, up from a net loss of 229.9 million a year earlier

Reuters November 20, 2020 00:06:14 IST
Malaysia's AirAsia X posts larger loss as revenue hit by virus curbs

Malaysias AirAsia X posts larger loss as revenue hit by virus curbs

KUALA LUMPUR (Reuters) - Long-haul carrier AirAsia X Bhd posted on Thursday a wider quarterly loss on reduced revenue, hit by coronavirus travel curbs, and added it was keeping up restructuring efforts key to its ability to raise new funding and survive.

The company reported a net loss of 308.5 million ringgit ($75.32 million) for the quarter that ended in September, up from a net loss of 229.9 million a year earlier.

Revenue dropped 94% to 59.9 million ringgit, it said in a bourse filing.

The arm of AirAsia Group Bhd has taken a hit as air travel ground almost to a halt in the past few months, hit by border curbs to control the spread of COVID-19.

In October, it proposed a major restructuring, seeking to reconstitute $15.3 billion of unsecured debt into a principal amount of 200 million ringgit and waive the rest, in order to avoid liquidation.

This month the airline revised the plan to re-categorise its creditors in a bid to tackle concerns raised by a creditor.

"The implementation of the scheme is currently ongoing and its success is critical to the ability of the Company to raise new funding, either as debt or equity, and to continue as a going concern," it said in a stock exchange filing.

AirAsia X is in talks with a financial institution to secure a government guaranteed loan of up to 500 million ringgit, it added.

($1=4.0960 ringgit)

(Reporting by Liz Lee; Editing by Clarence Fernandez)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.