The best option for Malaysia Airlines may be bankruptcy, analysts told CNBC, after last week's crushing earnings report sent the firm's shares tumbling over 18 percent on Monday to a record low of 15 sen ($0.05).
On Thursday the airline reported a 443.4 million ringgit ($137.8 million) net loss for the quarter, compared with a 278.8 million ringgit loss in the same period a year earlier.
MAS blamed a steep drop in sales from China following the disappearance of flight MH370, which disappeared on March 8 carrying 239 passengers and crew. Its share price is now down nearly 50 percent year to date.
"Bankruptcy might not be a bad thing under the circumstances," Mohshin Aziz aviation analyst at Maybank Investment Bank told CNBC.
"What's clear is something needs to be done - something drastic, something that has not been done before in the past," he added.
MAS was already vulnerable before the disappearance of flight MH370. The airline has been losing money for the past three years as competition from low-cost carriers like AirAsia ate into profits.
Bankruptcy might be one of several options for the airline to restructure after years in the red, the Wall Street Journal reported Prime Minister Najib Razak as saying.
Malaysia Airlines plans to undertake a thorough review of its business as it seeks a path to recovery. Reuters has reported that the airline is mulling selling part of its engineering unit and upgrading its ageing fleet.
However, Aziz was pessimistic on the prospects for a turnaround, and referred back to the last three times Malaysia Airlines tried to overhaul its business with fresh management and a capital injection.
"The overlying method all three times was similar and that's why the outcome was also unfortunately similar, and of course, we have the MH370 incident which further exacerbated the situation," he added.