Malaysia's AirAsia X says it is no longer classified as a distressed firm

AIRASIA X said on Tuesday (Nov 21) that Malaysia’s stock exchange had told the budget airline that it is no longer classified as financially distressed, thus lifting the threat of its being de-listed.

Both AirAsiaX and its parent company Capital A ran up deep losses following a plunge in demand due to the pandemic and have since scrambled to raise funds.

Last year, Bursa Malaysia Securities classified the firm as PN17, or a financially distressed company. Such firms may be de-listed from the exchange if they fail to stabilise their finances within a set time frame.

In July, AirAsia X, the medium- and long-haul operation of the AirAsia brand, asked the bourse to change that classification, saying it had undertaken a broad range of measures to improve its financial position, including debt restructuring, share consolidation and a revision of its business plan.

The bourse said on Tuesday that AirAsia had met the conditions for “waiver and upliftment” from the PN17 classification.

Separately, AirAsia X posted a nearly 78 per cent drop in its quarterly attributable profit to RM5.6 million (S$1.6 million). REUTERS