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Malaysian budget airline AirAsia X on Friday said it has asked the country’s stock exchange to lift its classification as a financially distressed firm. Both AirAsiaX and its parent company Capital A saw deep losses following a plunge in demand due to the pandemic and have scrambled to raise funds.
Bursa Malaysia Securities classified the firm as PN17, or a financially distressed company, last year. Such firms may be de-listed from the exchange if they fail to stabilise their finances within a set time frame. AirAsiaX said in a statement it has undertaken a broad range of measures to improve its financial position, including debt restructuring, share consolidation, and a revision of its business plan.
As part of the revised business plan, it said it has focused on medium-haul flight operations, terminated unprofitable routes, and recalibrated its focus on routes with proven loads and yield performance. “AAX has also during this time deferred all investments in new and immature routes,” it said, adding that it has restructured all contracts and arrangements in relation to its fleet and overall operations.