AirAsia Shares Rise Slightly After Dropping to Five Year Low

Shares in AirAsia have recovered from five-year-lows after the Indonesian government eased investors’ fears that the Malaysia’s popular budget carrier’s Indonesia affiliate could be grounded for a lack of funds.

AirAsia shares (AIRA.KL) were down by as much as 3 percent in early trade Thursday –the second day of decline after the stock price fell as much as 15 percent to a five-year low the day before.

This due to investors worried that the Jakarata-based affiliate might be shut down if it can’t meet a government-set deadline to raise sufficient funds.


 

Shares of AirAsia (AIRA.KL) dropped as much as 3 percent in early trade on Thursday, its second day of decline, on investor worries that its Jakarta-based affiliate may be shut down if it does not meet a government-set deadline to raise funds.

Indonesia’s transport ministry has said that PT Indonesia AirAsia was one of 13 carriers that must buckle down and fix their stretched balance sheets by the end of July.

Indonesia AirAsia released a statement saying that the unit’s operating license is not at risk and that the company’s level of equity has never been an issue of concern.

AirAsia stock closed up 0.8 percent, outperforming the rest of the market buoyed by news that Indonesia AirAsia is drafting a plan that it says will improve shareholder equity.


 
The Staff

The Staff

Gettin' it done, when the done needs gettin'.

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