AirAsia posts record quarterly loss as pandemic devastation continues

The loss was primarily attributable to the impairment of assets; revenue for the quarter fell 11.2%

Malaysian long-haul budget airline AirAsia X Bhd reported a record loss for the first three months of the year and its eighth quarterly loss in a row as the coronavirus pandemic devastated demand for air travel.

The airline, an affiliate of AirAsia Group Bhd, on Thursday reported a net loss of 5.67 billion ringgit ($1.37 billion) in January-March, more than 10 times the loss of 549.7 million ringgit seen in the same period last year.

The loss was primarily attributable to the impairment of assets, it said in a statement.

Revenue for the quarter fell 11.2% to 38.5 million ringgit.

AirAsia said it has assessed the recoverability of its assets in light of the Covid-19 pandemic and its restructuring process, and impaired those assets by 5.28 billion ringgit.

The airline has been looking to reconstitute 64.15 billion ringgit in debt, and said the asset impairment does not impact the restructuring.

"Appropriate accounting entries will be made on a successful restructuring that will reflect more appropriately the assets and liabilities based on the final agreed restructuring terms," it said.

It also said it remains committed to resuming commercial operations as soon as possible on the successful completion of the restructuring plan and the opening of international borders.

The airline has changed its financial year end from Dec. 31 to June 30, expecting the outcome of the restructuring to be known then. It said the basis of preparation for its audited financial statements will clear and be of more value to shareholders at that point.