Capital A chief executive Tony Fernandes said in June the Philippines unit was looking at an IPO next year, reviving a fundraising plan that had been shelved numerous times because of market volatility.

Bursa Malaysia stock exchange had classified both AirAsia X and Capital A as PN17, a tag given to financially distressed company, last year. Such firms may be de-listed from the exchange if they fail to stabilise their finances within a set time frame.

Capital A said it was in the "last stretch" of finalising its PN17 regularisation plan, aiming for a full submission to Malaysia' stock exchange in the near future.

The company reported a loss attributable of 178.8 million ringgit ($38.39 million) for the quarter ending Sept. 30, compared with a loss of 901.3 million ringgit a year earlier.

Meanwhile AirAsia X, an unit of Capital A, earlier this month met the conditions for "waiver and upliftment" from the PN17 classification.

($1 = 4.6570 ringgit)

(Reporting by Echha Jain in Bengaluru; Editing by Krishna Chandra Eluri and Shinjini Ganguli)