KUALA LUMPUR (July 20): AirAsia X Bhd (AAX) is about to shed its Practice Note 17 status for financially distressed companies. The medium-haul, low-cost carrier has submitted an application to Bursa Securities to be uplifted from PN17 altogether, on recent improvements in the group and its subsidiaries' financial performance.

Hence, it is also seeking a relief from having to submit and implement a plan to regularise its condition, its Thursday (July 20) bourse filing showed.

This confirmed The Edge weekly's report published for the week of July 17-July 23, quoting sources, that AAX was planning to lift itself from the PN17 classification in a matter of days, as it no longer triggered the PN17 criteria under the Main Market listing requirement.

The carrier submitted the application to Bursa on Thursday (July 20).

While awaiting for Bursa’ green light to lift its PN17 status, AAX has also, via the same application, sought for a further extension of up to three months from July 29 to Oct 28, to submit its regularisation plan in the event it does not receive  Bursa's approval for the proposed relief and upliftment.

AAX was previously granted an extension of time twice to submit its regularisation plan, first for six months to April 28, and then for a further three months till July 28 this year.

AAX slipped into PN17 status on Oct 27, 2021, while its sister company Capital A Bhd did so on Jan 14, 2022, after accumulating pandemic-led losses, which resulted in negative shareholders equity for both companies.

On Feb 21, AAX posted a net profit of RM153.48 million for the sixth quarter of the financial period ended Dec 31, 2022 (6QFP2022), a six-fold jump quarter-on-quarter from RM25.09 million in 5QFP2022, on the back of record average fare, higher load factor and a sharp rise in passengers carried. Quarterly revenue more than tripled to RM339.3 million, from RM100.1 million in the quarter prior.

AAX shares closed one sen or 0.6% lower to RM1.67 on Thursday, valuing the company at RM746.61 million, while Capital A settled one sen or 1.21% higher at 83.5 sen, giving it a market capitalisation of RM3.46 billion. Year to date, AAX has gained nearly 180% from when it was trading at RM1.07, while Capital A climbed over 28% from 18 sen.