AirAsia's Future In Doubt Due To Virus: Auditor

Malaysian budget carrier AirAsia's future is in "significant doubt" due to the collapse in demand for air travel caused by coronavirus, its auditor has warned

Kuala Lumpur, (UrduPoint / Pakistan Point News - 8th Jul, 2020 ) :Malaysian budget carrier AirAsia's future is in "significant doubt" due to the collapse in demand for air travel caused by coronavirus, its auditor has warned.

The aviation industry is facing its biggest-ever crisis due to the outbreak, with airlines worldwide laying off huge numbers of staff while some have already gone out of business.

AirAsia, which shook up Southeast Asian budget air travel with its slogan "Now everyone can fly", Monday reported a record quarterly loss of 803 million Ringgit ($187 million) for the first three months of the year.

Auditor Ernst & Young said Tuesday that "travel and border restrictions implemented by countries around the world has led to a significant fall in demand for air travel which impacted the group's financial performance and cash flows".

It noted the "existence of material uncertainties that may cast significant doubt on the group's and the company's ability to continue as a going concern", in an unqualified audit opinion statement to the Kuala Lumpur stock exchange.

Trading in AirAsia's shares was halted on Wednesday morning but resumed in the afternoon.