I wrote before about the coming rights issue of AirAsia X to raise RM 395 Million in much needed cash.
AirAsia X announced its fourth quarterly results, they were not exactly pretty: another loss of RM 168M, bringing the total for the year to RM 519M.
In other words, its 2014 loss is 1.3 times the amount the company wants to raise through its rights issue. The obvious question would be: how long will the rights issue last? The company still has not shown a single year of profit (corrected for one-off items and deferred tax).
From a Reuters article:
Analysts said shoring up the balance sheet has now become a priority for AirAsia X.
"Their capital base is really thin right now," said Maybank analyst Mohshin Aziz. "Among all the airlines in Asia Pacific, their balance sheet is the most precarious. They need to execute their rights issue as soon as possible."