Future of AirAsia in “significant doubt”, E&Y warns

KUALA LUMPUR – Budget airliner AirAsia Group Bhd’s ability to continue may be in “significant” doubt as the impact the coronavirus continue to impact the company, said auditor Ernst & Young.

AirAsia’s current liabilities already exceeded the current assets by RM1.84 bil (end of 2019). The financial performance of the company has been further hit by the current coronavirus pandemic, Ernst & Young said in a statement to the Kuala Lumpur stock exchange.

Ernst & Young said that the slump AirAsia is currently facing ‘indicate existence of material uncertainties that may cast significant doubts on the company’s ability to continue. AirAsia’s share fell by more than 10% after being halted earlier today (Wednesday)

Finance Minister Tengku Zafrul Aziz said back in June that the government did not provide financial aid to the airliner as they said ‘they can do okay, on their own’.

The coronavirus pandemic has caused major impact especially in the airline industry as Thai Airways International and Virgin Australia Holdings have entered bankcrupcy protection as they were unable to pay for their creditor.

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