AirAsia Group plans to raise between MYR2 billion and MYR2.5 billion ringgit (USD485-606 million) in 2021 through a combination of borrowings and equity funding “to ensure sufficient liquidity for the group,” it said in its latest financial statements covering the first quarter of 2021.

The AirAsia (AK, Kuala Lumpur International) parent posted its seventh consecutive quarter of net losses at the end of May amid ongoing travel restrictions, compounded by a third nationwide lockdown in Malaysia imposed from June 1 until at least June 14. It recorded a loss of MYR767.42 million (USD186 million) for the quarter, compared to MYR803.85 million (USD195 million) for the same period a year ago.

AirAsia has so far raised MYR336 million (USD81.5 million) from two tranches of private placements earlier this year, the group recounted, and it is “also currently renegotiating lease terms with all our lessors.”

In addition, it has “ongoing deliberations with a number of parties for joint ventures and collaborations that may result in additional third-party investments in specific segments of the group’s business.” And it claimed to be in talks with financial institutions to obtain further funding.

“Through these various fundraising exercises that the group is working on, the group foresees it will have sufficient liquidity to sustain the business operations,” the company concluded in its commentary on its prospects in the financial statements.

“Even if borders remain closed, the group is well-prepared to rely solely on domestic operations alone this year [...] as we await developments in regards to international air travel. Going forward, we expect to see improved stability in our operations as vaccinations continue to be rolled out in phases across all key markets coupled with better education and testing, alongside strong support for leisure travel bubbles among low-risk countries and territories and the push for global digital health passports,” it elaborated.

Separately, Ernst & Young issued an “unqualified audit opinion” on May 27, in the preparation of AirAsia Group’s audited financial statements for the year ending December 31, warning of “material uncertainty relating to going concern, in view of the ongoing impact of the Covid-19 pandemic.”

However, although events “indicate the existence of material uncertainties that may cast significant doubt on the group’s ability to continue as a going concern, [...] the recent development of vaccination against the Covid-19 pandemic and the implementation of national vaccination programmes in countries in which the group operates as well as elsewhere around the world provide a positive outlook for the commercial airlines industry.”