AGL 38.54 Increased By ▲ 0.97 (2.58%)
AIRLINK 129.50 Decreased By ▼ -3.00 (-2.26%)
BOP 5.61 Decreased By ▼ -0.03 (-0.53%)
CNERGY 3.86 Increased By ▲ 0.09 (2.39%)
DCL 8.73 Decreased By ▼ -0.14 (-1.58%)
DFML 41.76 Increased By ▲ 0.76 (1.85%)
DGKC 88.30 Decreased By ▼ -1.86 (-2.06%)
FCCL 35.00 Decreased By ▼ -0.08 (-0.23%)
FFBL 67.35 Increased By ▲ 0.85 (1.28%)
FFL 10.61 Increased By ▲ 0.46 (4.53%)
HUBC 108.76 Increased By ▲ 2.36 (2.22%)
HUMNL 14.66 Increased By ▲ 1.26 (9.4%)
KEL 4.75 Decreased By ▼ -0.11 (-2.26%)
KOSM 6.95 Increased By ▲ 0.10 (1.46%)
MLCF 41.65 Decreased By ▼ -0.15 (-0.36%)
NBP 59.60 Increased By ▲ 1.02 (1.74%)
OGDC 183.00 Increased By ▲ 1.75 (0.97%)
PAEL 26.25 Increased By ▲ 0.55 (2.14%)
PIBTL 5.97 Increased By ▲ 0.14 (2.4%)
PPL 146.70 Decreased By ▼ -1.70 (-1.15%)
PRL 23.61 Increased By ▲ 0.39 (1.68%)
PTC 16.56 Increased By ▲ 1.32 (8.66%)
SEARL 68.30 Decreased By ▼ -0.49 (-0.71%)
TELE 7.23 Decreased By ▼ -0.01 (-0.14%)
TOMCL 35.95 Decreased By ▼ -0.05 (-0.14%)
TPLP 7.85 Increased By ▲ 0.45 (6.08%)
TREET 14.20 Decreased By ▼ -0.04 (-0.28%)
TRG 50.45 Decreased By ▼ -0.40 (-0.79%)
UNITY 26.75 Increased By ▲ 0.35 (1.33%)
WTL 1.21 No Change ▼ 0.00 (0%)
BR100 9,806 Increased By 37.8 (0.39%)
BR30 29,678 Increased By 278.1 (0.95%)
KSE100 92,304 Increased By 366.3 (0.4%)
KSE30 28,840 Increased By 96.6 (0.34%)
Business & Finance

Malaysia's AirAsia shares slide after record quarterly loss

  • The airline said ongoing discussions for raising new capital in Indonesia and Philippines were also positive.
Published March 30, 2021

KUALA LUMPUR: Shares in AirAsia Group Bhd fell in morning trade on Tuesday, as analysts lowered earnings forecasts after the Malaysian budget airline group posted its record quarterly loss. The stock fell as much as 6.2% in the first half session of trade.

Affin Hwang Capital cut earnings forecasts for 2021 and 2022, expecting a larger net loss this year due to lockdowns in Malaysia in the first quarter, closed borders and longer-than-expected timeframe for the COVID-19 immunisation programme.

"We now anticipate AirAsia to report net loss of 92 million ringgit in 2022 due to slower-than-expected recovery in international tourism," analyst Isaac Chow said in his note.

AirAsia in a results presentation on its website said it expects a soft first quarter for its Malaysia unit due to lockdowns, but the following quarter could see up to 33% of pre-COVID domestic levels following relaxation on some cross-state tourism.

AmInvestment Bank said in its note that it was highly critical for AirAsia to shore up its liquidity quickly given its cash burn rate.

The research house said while prospects for the air travel industry and airlines have improved, AirAsia may need to raise more fresh capital, "including potentially a debt-to-equity swap for creditors (that is also highly dilutive to its existing shareholders) to ensure its long-term survival."

In its presentation, AirAsia said it reduced its average cash burn by 92% in the last quarter of 2020, partly due to continued support from lessors and banks for deferrals.

The airline said ongoing discussions for raising new capital in Indonesia and Philippines were also positive.

AirAsia reported a record $591 million quarterly loss on Monday.

AirAsia has been looking to raise up to 2.5 billion ringgit to weather the pandemic, and said that it expects to secure 1 billion ringgit in loans from three Malaysian banks.

Comments

Comments are closed.