Shares in Malaysia`s AirAsia Group Bhd were halted on Wednesday after its auditor said there were material uncertainties that cast doubt on the budget carrier`s ability to continue as a going concern. In an unqualified audit opinion on the airline`s earnings results for 2019 issued late on Tuesday, Ernst & Young PLT said the financial statements were prepared on a going concern basis - which is dependent upon a recovery from the COVID-19 pandemic and the success of fundraising efforts.

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AirAsia on Monday posted a 803.3 million ringgit ($188 million) loss for the three months ending March 31, its biggest first-quarter loss since its listing in November 2004.

The company said last month it was evaluating proposals for raising capital to strengthen its equity base and liquidity.

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Company management has guided that an equity raising via a placement or rights issue looks imminent, Affin Hwang Capital analyst Isaac Chow wrote in a note to clients on Tuesday.

AirAsia representatives did not immediately respond to a request for comment.

AirAsia said on Monday there were ongoing deliberations for joint ventures and collaborations that might result in additional third party investments in specific segments of the group`s business.

The trading halt is due to be lifted from 2.30 p.m. local time (0630 GMT), a release to the exchange said.