AirAsia shares in biggest daily fall as auditor flags ‘going concern’ doubts | Malay Mail

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KUALA LUMPUR July 8 — Shares in Malaysia’s AirAsia Group Bhd tumbled more than 17 per cent today in their biggest daily fall after the auditor cast doubt on the budget carrier’s ability to continue as a going concern due to the coronavirus travel slump. Auditors EY issued an audit opinion...

Wednesday, 08 Jul 2020 07:01 PM MYT

Auditors EY issued an audit opinion stating the airline’s 2019 earnings were prepared on a going concern basis, which is dependent upon a recovery from the Covid-19 pandemic and the success of fundraising efforts. Like other airlines, AirAsia has been hit hard as the coronavirus hammers travel demand. It posted a first-quarter loss of RM803 million, its biggest loss for the quarter since its 2004 listing.AirAsia management has given guidance that an equity raising via a placement or rights issue looks imminent, Affin Hwang Capital analyst Isaac Chow wrote in a report yesterday.The airline’s liabilities exceeded its assets by RM1.

 

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