AirAsia in the red for second quarter

PETALING JAYA: AirAsia Group Bhd posted a net loss of RM992.89 million for the second quarter ended June 30, compared to a net profit of RM17.34 million reported in the corresponding period of the previous year primarily contributed by depreciation and interest on leases, realised losses on fuel hedges and an ineffective unrealised fuel hedge.

Revenue for the period shrank 95.9% to RM118.96 million from RM2.92 billion previously.

The group told Bursa its airlines business reported a negative earnings before interest, taxes, depreciation, and amortisation (EBITDA) of RM637.3 million in 2Q`20 against an EBITDA of RM217.8 million reported in 2Q’19, as the reduction of group expenditure could not offset the decline in revenue due to the collapse in passenger demand following widespread border closures.

Its non-airline businesses also reported negative EBITDAs for the quarter: Teleport (-RM5.39 million), AirAsia.com (-RM16.17 million), BigPay Group (-RM24.06 million) and other businesses (-RM119,000).

For the cumulative six months, the group posted a net loss of RM1.8 billion against a net profit of RM111.78 billion previously. Revenue stood at RM2.43 billion, a 57% decline from RM5.65 billion a year before.

In regard to its prospects, AirAsia revealed that it has applied for bank loans in its operating countries to shore up its liquidity.

In Malaysia, it stated that it is securing commitments from the banks for the government guarantee loan under the Danajamin Prihatin Guarantee Scheme while its Philippines and Indonesia entities are currently in various stages of bank loan applications.

Aside from that the group said it has received a number of proposals to raise capital to strengthen its equity base from investment bankers, lenders as well as potential investors.

Barring any reversal of flight resumption plans and any major shock to demand, AirAsia foresees that it has sufficient working capital to sustain business operations.

source https://www.thesundaily.my/business/airasia-in-the-red-for-second-quarter-LD3647386