AirAsia shares slump 17.5% after auditor says carrier’s future is in ‘significant doubt’ – The National

AirAsia shares slump 17.5% after auditor says carrier’s future is in ‘significant doubt’ – The National

The Covid-19 pandemic has hit airlines around the world hard, creating an unprecedented crisis for the global aviation industry

















AirAsia planes are seen parked at Kuala Lumpur International Airport 2. Reuters. 







AirAsia Group's shares slumped after trading resumed following a suspension when its auditor warned there are material uncertainties that cast doubt about the Malaysian carrier's ability to continue as a going concern.



Trading in the Kuala Lumpur-listed carrier was suspended on Wednesday before resuming at 10:30am UAE time. The low-cost airline's shares closed down 17.5 per cent.



The group had a net loss of 283 million ringgit (Dh243m) for the 2019 financial year and the current liabilities exceeded its current assets by 1.84 billion ringgit, Ernst & Young said in an unqualified audit opinion on the group's 2019 financial results.



On top of that, the significant fall in air travel demand due to coronavirus-related border restrictions have hit the group's financial performance and cash flow, it said.



These conditions and the 2019 financial performance "indicate existence of material uncertainties that may cast significant doubt on the group's and the company's ability to continue as a going concern,"