AirAsia X's losses increase eightfold to USD 5.9bn

Kuala Lumpur: AirAsia X has recorded a massive USD 5.9 billion loss for the three months ending June 30, 2021. It is an eight-fold increase on the loss in the same quarter last year and the airline's biggest quarterly loss to date.
The airline said in the stock exchange filing they have suffered extensively from the Covid-19 fallout. AirAsia X has suspended the bulk of its scheduled flight operations since April 2020 and parked the majority of its fleet. In the three months to June 30, 2021, the airline recorded revenues of USD 17.25 million.
"The Company has made a provision of RM 23.8 billion in the current quarter though it should be highlighted that the contractual liabilities for which the provision is made will be waived upon a successful completion of the proposed debt restructuring exercise," The loss comes as the beleaguered airline attempts to negotiate with creditors in a long-running court-supervised restructuring programme. Nearly 12 months ago, AirAsia X said it wanted to restructure USD 15.5 billion worth of debt, including a USD 5 billion-plus aircraft order with Airbus.
Creditors holding a minimum of 75 per cent of the unsecured debts must approve any debt restructuring proposal for it to pass.
Recently, Malaysia's AirAsia X Bhd, the listed company behind AirAsia X, said talks with creditors were progressing well and that it hopes to conclude them by the end of October.