At the close of trade, the stock had recovered slightly to trade 15 sen or 6.67% lower at RM2.10, with 13.21 million shares changing hands. Its market capitalisation stood at RM934.38 million.

On July 20, AAX submitted a request to Bursa to be completely uplifted from the PN17 category, on the back of its improved financial situation.

It has also requested the bourse regulator to exempt it from having to submit a proposed regularisation plan as required under the Main Market Listing Requirements.

Bursa has rejected both of AAX’s applications, according to the group’s filing today.

However, it has granted a lifeline to the low-cost carrier, granting an extension until Jan 17, 2024 for AAX to submit its regularisation plan.

“In this regard, the company will consider all available options (including the possibility of an appeal) and announce the next course of action to be undertaken in due course,” said AAX in the filing.

AAX had fallen into the PN17 category, which denotes financially troubled listed companies, in October 2021 as a result of pandemic-induced losses that led to negative shareholder equity.

The airline had previously received two deadline extensions – the first lasting six months until April 28, and the second until July 28 this year.

Despite its PN17 status, AAX’s shares have made a strong comeback this year, climbing 248.33% year-to-date and 409.76% compared to one year ago.

It registered a net profit of RM5.5 million in the second quarter of the 2023 financial year (Q2 FY2023), a 100.8% increase from a net loss of RM652.5 million in the same quarter last year.

Revenue rose almost fivefold to RM512.9 million from RM107.2 million during the same period.