AirAsia X (D7, Kuala Lumpur Int'l) has warned in its latest financial statements that its going concern status depends partly on its ability to obtain continued support from lessors, maintenance service providers, and financial institutions.

The long-haul low-cost carrier posted on August 26 a net loss of MYR305.2 million ringgit (USD73.3 million) for the quarter ending June 30, compared to a net loss of MYR207.1 million (USD49.7 million) a year earlier.

Revenue dropped by 91% to MYR91.4 million (USD21.9 million) as it “remained in hibernation throughout 2Q20” and “is expected to remain in hibernation mode in the near term,” it said in a statement accompanying the results.

In the quarterly report itself, AirAsia X said it “continues to face severe liquidity constraints” and “continues to seek payment deferrals and concessions from our suppliers, lessors, and lenders.” Further payroll reductions will be implemented over the next month to reflect the low level of operations, it added.

The ability of the company to continue in business “is dependent on the ability of [parent AirAsia Group] and the company to gradually resume scheduled flight operations on a staggered basis starting early 2021,” it said.

AirAsia Group reported its biggest quarterly net loss on August 25, at MYR1.2 billion (USD288 million), compared to a MYR47 million (USD11.3 million) profit for the same period last year. But it said its airline business had stabilised, supported by Malaysian domestic services separate from AirAsia X.

AirAsia X said that its “fleet remains grounded apart from a limited number of cargo and charter flights.” It currently has twenty-four A330-300s, at least 19 of which are leased from 10 lessors, according to the ch-aviation fleets advanced module. All of the aircraft remain inactive except two, 9M-XXP (msn 1481) and 9M-XXW (msn 1596). Flightradar24 and Radarbox ADS-B data shows that these A330s made sporadic flights from Kuala Lumpur Int'l to Delhi Int'l, Hangzhou, Melbourne Tullamarine, Osaka Kansai, and Shanghai Pudong during August.

The airline said in its report that it operated just 16 scheduled flights during the April-June quarter, compared to 4,824 flights for the same period in 2019.

In related news, AirAsia X subsidiary Thai AirAsia X (XJ, Bangkok Don Mueang) was among seven Thai airlines seeking a combined THB24 billion baht (USD771 million) in soft loans and other support, Bangkok confirmed on August 28, the others being Nok Air, Thai AirAsia, Thai Lion Air, Thai Smile, Thai VietJetAir, and Bangkok Airways, Reuters reported.

“The government will consider the requests from the airlines and find ways to support operations, including unlocking air travel, and boost domestic tourism,” Prime Minister Prayuth Chan-ocha pledged.