ANALYSTS foresee stronger prospects for AirAsia X Bhd (AAX) moving forward with international borders gradually reopening and strengthened further by its cargo-driven focus model despite below expectation results for the second quarter of 2022 (2Q22).
PublicInvest Research’s analyst Denny Oh noted that AAX’s net loss narrowed to RM11.3 million in 2Q22 from RM136.9 million in 1Q22 on higher revenue which is below his expectations.
“We like the turnaround story of the group, though the full value is only likely to be attained with shareholders going through the entire corporate exercise including rights issue,” Oh said in a note yesterday.
He said AAX’s revenue increased to RM119.3 million mainly due to higher revenue from freight services and charter flights, with minimal contribution from scheduled flights as international air travel and border restrictions remained in force during the quarter.
The group’s operating expenses for 2Q22 also reduced by 28% compared to previous quarter.
Meanwhile, Oh said AAX’s proposed debt restructuring will take effect upon lodgement of the sanction order with the Registrar of Companies of Malaysia which is expected to take place in the coming weeks.
“The lodgement will mean that the scheme takes full legal effect with the financial impact reflected in the next quarter ended March 31. Read more