Friday, October 23, 2020

AirAsia Shares Rise 3.6%

 Shares of AirAsia Group Bhd rose during the trading session this morning after the low-cost carrier was reported to have secured a loan to support its ongoing capital accumulation plan.


According to Reuters, citing sources, the RM300 million loan issued by Sabah Development Bank Bhd will help the airline go through a difficult period of two months, financing its local operations.


Bernama reported, this is due to the increase in the number of cases of COVID-19 infection which will continue to affect the air travel sector for a longer period.


AirAsia Bhd chief executive officer Riad Asmat said the loan was part of the company's capital raising measures.


"We are happy with the development," he said.


As of 10.57 this morning, AirAsia shares rose two sen or 3.60% to 57.5 sen with 9.48 million shares changing hands.