In a filing with Bursa Malaysia today, the budget carrier said the exercise would enhance its financial position with a marginal increase in net assets and improvement in net gearing.

It said gross proceeds would be used for fuel hedging settlement, aircraft lease and maintenance payments, and general working capital expenses, among others.

It said the outbreak of the global Covid-19 pandemic caused the imposition of travel restrictions which led to significantly reduced passenger traffic and uncertainty over the group’s future prospects and operations.

In line with the expected vaccination programme and a gradual increase in air travel, the group hoped to operate approximately at 65% to 70% of its 2019 pre-pandemic capacity this year.

The airline said it would continue to assess the potential of increasing more flights and destinations.