AirAsia reports Q3 net loss, hit by Indonesia and weak currencies

[KUALA LUMPUR] AirAsia Bhd swung to a third-quarter loss due to foreign exchange losses and a writedown at its lossmaking Indonesian associate as Asia's biggest budget airline seeks to address market concerns over high debt and dues owed by its affiliates.

The Malaysia-based group booked prior-year unabsorbed losses of 469 million ringgit (S$156 million) in July-Sept for its Indonesian associate, while the company's foreign exchange losses soared to 436 million from 153 million a year ago.

For the third quarter, AirAsia reported a net loss of 406 million ringgit versus a net profit of 5.4 million ringgit a year ago. Some of the losses were offset by one-off gains.

The airline, which said last month its major shareholders were evaluating "all strategic options" however said it was positive of its prospects for the remainder of the year. "We see a great end to the year and a light at the end of the tunnel for the Malaysian operations after a series of headwinds that affected our operations," said founder and group CEO Tony Fernandes.

Reuters reported last month that its founders were tapping investors to take the airline private.

REUTERS