AirAsia X seeks debt help with flights unlikely until 2021

AirAsia Group’s long-haul arm said it needs to reach agreements with major creditors to restructure outstanding debt as it faces “severe liquidity constraints” that threaten its ability to resume flying and continue as a going concern. The warning came in an exchange filing Wednesday, in which AirAsia X also reported a net loss for the three months ended June 30 of 305.2m ringgit ($73m), worse than a 207.1m ringgit deficit a year ago. Sales tumbled 91% to 91.4m ringgit. “In the short term, the company will need to seek agreement with major creditors to restructure outstanding liabilities, which have accrued during the period since the start of the Covid-19 pandemic, in order to continue as a going concern,” AirAsia X said in the filing. Securing support from aircraft lessors, maintenance service providers and financial institutions is necessary for the restart of scheduled flights on a staggered basis early next year and a return to profitability, it said. The Malaysia-based budget carrier hasn’t been able to operate any of its usual international passenger services bar a few cargo and charter flights to help repatriate people stranded by the coronavirus.<br/>