International Finance

AirAsia posts Q12020 net losses of RM803.85 mn due to Covid-19

AirAsia Covid-19
Revenue fell to RM2.31 billion from RM2.73 billion previously

AirAsia Group has posted net losses of around RM803.85 million during the first three months of this year due to the ongoing coronavirus (Covid-19) pandemic, the media reported.

In the first quarter of the previous year, the carrier made a profit of around RM21.31 million.

Due to the Covid-19 crisis,  AirAsia’s revenue fell to RM2.31 billion from RM2.73 billion previously.

In a stock exchange filing, AirAsia said, “Fears of the spread of the virus, as well as travel restrictions and border controls announced by the government of different countries, led to a collapsed in demand for air travel in the month of February and March 2020.”

According to reports in the media, AirAsia has applied for a loan of around RM3 billion to help the carrier weather the Covid-19 crisis.

A research report by CGS-CIMB Equities Research says, “We estimate AirAsia needs RM3 billion in new funding to maintain a healthy cash position.”

Reportedly, the group is holding talks with multiple banks, however, around 80 percent of the loans may be guaranteed by Danajamin Nasional Berhad, and may issue new equity or convertible securities to strategic shareholders while not ruling out a rights issue.

AirAsia Group expects its 2020 capacity to be just 45-60 percent of last year’s levels due to the coronavirus outbreak and to fill 70-75 percent of seats this year compared with the usual 85 percent.

The carrier posted the forecast on its website.

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