AirAsia in trading halt after auditor notes ‘going concern’ doubts

AirAsia is studying a dual listing in Hong Kong, part of plans to become a pan-Asian low-cost airline player as it also moves towards setting up a joint venture in China, people familiar with the matter said on Sunday. PHOTO: EPA. Sketched by the Pan Pacific Agency.

BENGALURU, Jul 8, 2020, BT. Shares in Malaysia’s AirAsia Group Bhd were halted on Wednesday after its auditor said there were material uncertainties that cast doubt on the budget carrier’s ability to continue as a going concern, The Business Times reported.

In an unqualified audit opinion on the airline’s earnings results for 2019 issued late on Tuesday, Ernst & Young PLT said the financial statements were prepared on a going concern basis – which is dependent upon a recovery from the Covid-19 pandemic and the success of fundraising efforts.

AirAsia on Monday posted a RM803.3 million (S$262.4 million) loss for the three months ending March 31, its biggest first-quarter loss since its listing in November 2004.

The company said last month it was evaluating proposals for raising capital to strengthen its equity base and liquidity.

Company management has guided that an equity raising via a placement or rights issue looks imminent, Affin Hwang Capital analyst Isaac Chow wrote in a note to clients on Tuesday.

Share it

Exclusive: Beyond the Covid-19 world's coverage