The airline cancelled 600 flights for March, according to an investor presentation published after it reported a higher quarterly net loss. AirAsia X flagged lower forward bookings and pressure on fares in the presentation. The virus has deepened the challenges facing the airline and sister carrier AirAsia Group Bhd, whose Chief Executive Tony Fernandes and Chairman Kamarudin Meranun have both stepped aside for at least two months amid investigations into a corruption scandal. Airbus was alleged to have paid a $50 million bribe for plane orders.

Brendan Sobie, a Singapore-based independent aviation analyst, said AirAsia X was highly exposed to China and other markets in North Asia significantly impacted by the coronavirus but the carrier was also in a weak financial position prior to the crisis.

Flights to and from mainland China accounted for about 30 percent of AirAsia X's capacity before the outbreak of the virus. It has a fleet of 24 A330 planes. The carrier last August reached a revised deal with Airbus to take 78 A330neos and 30 long-range A321XLR narrow bodies, down from earlier plans for 100 A330neos. AirAsia X is Airbus' biggest customer for the A330neo, a more fuel efficient version of the older A330 model.

Copyright Reuters, 2020