As oil price is volatile. In order to control their opex, almost every airlines hedge their fuel, Forex and interest rate.

#ddtg

KUALA LUMPUR (July 7): AirAsia Group Bhd’s external auditor has issued an unqualified audit opinion on the material uncertainty relating to the group’s going concern, in view of the current economic condition and Covid-19 pandemic.

https://www.theedgemarkets.com/article/aira...g-going-concern

May need bankruptcy protection.

I am still holding it with a loss. What should I do. Seeing their unqualified opinion audit report. Omg.

how long you hold for? y didnt cut loss?

Bought since last year Nov/Dec.

Was fun trading during mco trying to get back the lost flights value. Au revoir.

should've cut loss during June

too late for that now

best for you to hold it hopes this company recover for years to come

TBH despite the jar-dropping results, the stock price didn't drop that much to properly reflect the going concern and very poor Q1 performance.

The price supports might not there soon.

If what you want is exposure to possible return of normal for air industry, then a better exposure might be airport.

My opinion ye.

My average buying price is RM 1.459.

I just hope the business can sustain and grow in future as I do not might to hold it in long term. I read that the tourism industry need 4 years to recover.

I do have airport in my portfolio but still red.

My concern is whether they can sustain the business now.

imagine Q2 come out, 1bil above loss. the share price will be how..

Trading suspended for airasia

incoming bungee jumping

All I am saying its overzealous betting in hedges has put the company in very dire position.
It's had a history of huge losses before in hedges and once more its being hit very hard with its hedges.
Having over 11 million in fuel hedges is certainly reckless betting.

And then we have the issue of trust of the owners...
The 2 owners who were alleged for accepting 500mil US in bribes...
Securing a 30% placement to themselves and then have the company embark on a sale and leaseback of its planes, where the money from this fund raising exercise is then splurged on a dividend orgy, thus profiting the 2 owners who got that extra 30% shares.

If they were financially strong, they wouldn't needed that sale and leaseback.

Now they are crying out loud that the company need funding??
(Check the shareholder spread.... any bailout is like bailing out those 2!)

and then one of the boss was found guilty and fined for insider trading!

Think about these issues first .................

Well atleast AA never fudged their number. From their balance sheet you already know they are in big trouble. Their share dropped so little yesterday already can see many never read the reports.

Even with EY audited opinion people still hoping for good news and thought suspension is to provide good news. Crazy, crazy time.

Err..... there's way too much numbers in the rpt.... and it's not easy to get an understanding... in fact much easier to 'hide stuff'... this issue has been brought up b4... which was one of the main point brought by one ang moh...

The planes they sold to the leasing companies... err... how come it can declared as a non current asset? Sold already ma... can then flip and coin them as 'right of use assets' meh? No under standing...

The hedges.... they had been hedging over a billion... and for me, what's given (the info) is not enough.... and more so... when they are sitting on more than a billion ringgit in hedging losses...

Paper losses more than a billion in hedging...
Burned 900 million cash for the quarter ending March....
huhu... the lockdown period... no income... how?

Die die die die....

And oh ... they still got the capital commitment to buy new planes is now over 115 Billion!!!!

115 Beeeeeeeeeeeeeeelliiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiooooooooonnnn !!!!




This post has been edited by Boon3: Jul 8 2020, 10:02 AM

Oh yeah another thing, they sold alot of advance booking and booked those orders on to book already even the fulfillment did not happen yet. If refund were to happen the cash drain will be another issue.

Suspend for trading and got someone queue to sell @0.6
Ouch..hurt

Just wanted to sell today and they suspended. Whyyyy

https://focusmalaysia.my/mainstream/airasia...al-uncertainty/

This post has been edited by kiyo16: Jul 8 2020, 11:24 AM

Luckily i cut my losses by selling all my holdings on monday.