The airline, which is an affiliate of AirAsia Aviation Group, announced today that its revenue for the quarter ended June 30, 2022 was RM107 million, a 5% drop from RM113 million recorded in the quarter to March 31.

The company attributed its poorer financial performance to a one-off provision for travel vouchers that had been distributed to travellers and travel agents who had been affected by its debt restructuring.

In a statement issued today, the airline said the provision that amounted to RM653 million, had led to a loss before tax (LBT) of RM652 million during the quarter.

Otherwise, AAX said, it would have posted a profit before tax of RM300,000.

The airline said it was bound by the terms of the restructuring scheme in respect of debts and liabilities and was therefore restricted from giving cash refunds to passengers and travel agents.

It said the offer of promotional air privileges in the form of travel vouchers was a gesture of goodwill. “The vouchers were for the full amount of the cancelled flight bookings caused by the (Covid-19) pandemic,” it added.

AAX said that with the debt restructuring exercise completed, it was now on a “steady course to significantly increase scheduled passenger flight operations” to meet strong pent-up demand.

AAX Malaysia CEO Benyamin Ismail said that despite challenges such as high fuel prices and a weakened ringgit as well as continued travel restrictions to key markets such as China, Japan, and Taiwan, it is now on a “strong path to recovery”.

The airline had, on Aug 18, announced that it intended to seek shareholders’ approval for a partnership with Capital A Group at an EGM.

Acting group CEO Tony Fernandes said that while the debt restructuring had likely resulted in the airline having the lowest operating cost of any carrier in its category, travel restrictions that still apply, as well as investments in infrastructure and staff to ramp up its operations could result in additional costs in the short term.