AirAsia’s Future in Doubt due to Virus: Auditor

Malaysian budget carrier AirAsia 's future is in "significant doubt" as a result of the collapse in demand for air travel caused by the novel coronavirus, the auditor warned.

The aviation industry is facing its biggest-ever crisis as a result of the outbreak, with airlines worldwide laying off a large number of staff, while some have already gone out of business.

AirAsia, which shook up Southeast Asian budget air travel with its slogan 'Now everyone can fly,' posted a historic quarterly loss of 803 million ringgit ($187 million) for the first three months of the year.

Auditor Ernst & Young said Tuesday that “travel and border restrictions implemented by countries around the world has led to a significant fall in demand for air travel which impacted the group’s financial performance and cash flows”.

In an unqualified audit opinion to the Kuala Lumpur Stock Exchange, it noted the "existence of material uncertainties that could cast significant doubts on the group's ability and the company's ability to continue as an ongoing concern."

Trading in AirAsia’s shares was halted on Wednesday morning but resumed in the afternoon.