Trading of AirAsia’s shares stop after E&Y auditor warns the future of airline as a “going concern”
On Wednesday, Bursa Malaysia (KLSE) suspended public trading for low-cost carrier AirAsia Group Berhad (AIRA.KL) after an Ernst & Young external auditor gave an opinion about the airline’s ability to continue as a standing concern.
“The slump in air travel and poor financial performance indicate 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,” an Ernst & Young auditor said in a statement.
According to Ernst & Young, AirAsia’s current liabilities already exceeded its existing assets by 1.84 billion Ringgit ($430 Million) at the end of 2019. The coronavirus crisis further hit the airline’s financial performance and cash flow.
“This is by far the biggest challenge we have faced since we began in 2001,” AirAsia’s Chief Executive Officer Tony Fernandes stated on Monday.
On Wednesday, AirAsia’s shares were down by 12% as of 2:47 p.m. GMT.