The group also remained positive on its outlook despite the inclusion of a material uncertainty related to going concern (MUGC) paragraph in its latest audited consolidated financial statements, describing it as a procedural outcome tied to timing, and not a reflection of deterioration in its business fundamentals.
Capital A CEO Tony Fernandes said the inclusion of the MUGC paragraph was an audit requirement when certain milestones remained pending at the date of issuance of audit report, even when they were well on track.
“It does not reflect any concern about the strength of our business. In fact, meaningful progress is being made across all fronts, and we remain confident about completing all components of our restructuring plan successfully,” he said in a statement today.
Capital A chief financial officer Mun Hui Teh said based on discussions with the group’s external auditor, the MUGC paragraph would be resolved upon fulfilment of the remaining key conditions precedent, namely regulatory clearance and completion of the RM1 billion placement for AirAsia X.
“From a financial standpoint, we are seeing strong indicators of recovery. The first quarter of 2025 was particularly encouraging, and with investor confidence solidifying, we are focused on delivering a clean exit from Practice Note 17 (PN17) and positioning Capital A for long-term growth,” she added.
The progress made by Capital A includes its RM1 billion private placement for AirAsia X which is close to completion, with a sovereign wealth fund as the lead investor currently finalising its internal clearance.
The group also said that a letter from another investor confirming interest in participating in the private placement had been received.
It said Capital A’s financial audit for the financial year ended Dec 31, 2024 was complete, while the first quarter of financial year 2025 delivered a strong performance driven by robust demand, weakening fuel prices, and the strengthening of key Asean currencies.
It said the aviation business disposal, a key condition of the restructuring, was moving towards conclusion, while the aviation group was looking to reactivate all of its 250 aircraft by July, which would mark a major recovery milestone.