The increase in air travel following the lifting of Malaysia's Covid-19 restrictions on April 1 is seen to have failed to help medium and long-haul airline AirAsia X as its financial performance deteriorated.
Through the company's financial report, income for the quarter ending 30 June 2022 shrank 5% from RM113 million to RM107 million.
It is underlined that the poor financial performance is due to the provision of one-off travel vouchers distributed to customers and travel agents as compensation for debt restructuring.
Comment on the company's official statement again that the provision recorded a total of RM653 million, which led to a loss before tax (LBT) of RM652 million.
Generally, companies that are forced to carry out debt and liability restructuring have issued air promotion vouchers to affected customers.
However, AirAsia X announced that its debt restructuring has been completed and that it is preparing to 'provide a robust air travel experience to customers'.
Explained Chief Executive Officer (CEO) Benyamin Ismail, although there are many challenges ahead such as fuel spikes and the weakness of the ringgit, he believes they are on the 'track of recovery'.
In the meantime, please be reminded that the company is trying to get shareholder approval to establish a partnership with Capital A group to the EGM.
As of this writing, AirAsia X shares are trading flat at 48 sen with a company capitalization of RM199.17 million.
