AirAsia in trading halt after auditor notes 'going concern' doubts

Shares in Malaysia’s AirAsia Group were halted Wednesday after its auditor said there were material uncertainties that cast doubt on the budget carrier’s ability to continue as a going concern. 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 803.3m ringgit ($188m) loss for the three months ending March 31, its biggest Q1 loss since its listing in November 2004. 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. AirAsia said on Monday there were ongoing deliberations for joint ventures and collaborations that might result in additional third party investments in specific segments of the group’s business.<br/>