AirAsia X Malaysian airline, has reported a record quarterly loss of $5.9 billion dollars

AirAsia X Bhd, based in Malaysia, reported a record quarterly loss of $5.9 billion on Monday, up eightfold from a year ago, as a multibillion-dollar provision to pay debts drove up operational costs.

It was the airline's seventh loss in a row. It is a subsidiary of AirAsia Group Bhd.

The April-June net loss increased to 24.6 billion ringgit ($5.88 billion), up from 305.2 million ringgit a year ago.

The airline said it made a 23.8 billion ringgit accounting provision to its creditors during the quarter because it is in breach of its contract obligations.

Revenue fell 20.9 percent to 72.3 million ringgit from 91.4 million ringgit the previous year.

The impact of the provision, according to a stock exchange filing, should be temporary.

"Upon successful completion of the proposed debt restructuring operation, the contractual commitments for which the provision is made will be waived," it stated.

The airline firm intends to operate a smaller fleet and return excess aircraft to lessors in order to cut costs.
It has returned one aircraft and is in talks with other aircraft lessors to "reach the ideal fleet size," according to the company.

Future lease rental rates are being discussed, as are discussions with other service providers to cut maintenance expenses.

Last October, the airline proposed restructuring its 64.15 billion ringgit debt into a principal amount of 200 million ringgit, with creditors meeting by the end of October to propose a restructuring scheme https://www.reuters.com/business/aerospace-defense/with-progress-creditor-talks-malaysias-airasia-x-targets-end-oct-meetings-2021-09-17.

It stated that negotiations are progressing well.