AIRASIA Group Bhd remains financially sustainable with strong liquidity and does not need a government bailout, group adviser Tan Sri Tony Fernandes said on Friday, as he sought to quell concerns over the airline’s finances following a heavy second-quarter loss and sharp share-price sell-off.
“We're okay, we're sustainable,” Fernandes told a media briefing. “We are good at managing cash and we are strong in liquidity.”
Fernandes said AirAsia had more than RM1 billion in cash and that its current challenges were “far, far” less severe than those faced during the Covid-19 pandemic.
He said the latest pressure was largely driven by geopolitical tensions and higher jet fuel costs, while travel demand remained strong.
Fernandes said the second quarter was the toughest period for the airline, but earnings were catching up with costs as AirAsia adjusted fares to reflect higher fuel prices.
AirAsia reported a net loss of RM831 million for the second quarter ended June 30, hit by soaring jet fuel costs and foreign-exchange losses of RM331 million.
Jet fuel costs surged 66 per cent from the previous quarter to an average of US$183 a barrel during the quarter following the escalation of the US-Israeli war on Iran.
Fernandes said AirAsia’s load factor stood at 80 per cent in the third quarter and that bookings for the fourth quarter remained strong. He also expressed optimism about operations in Indonesia, the Philippines and Thailand.
His comments came two days after Reuters reported that the Malaysian government had asked Malaysia Airlines and Batik Air whether they could absorb AirAsia’s domestic market share as part of scenario planning while authorities monitor the airline’s financial health.
AirAsia’s current liabilities stood at RM18.4 billion as of June 30, compared with cash and bank balances of RM954 million, according to its financial results.
Fernandes said AirAsia’s dominant position in the Malaysian domestic market meant its fleet could not be replaced quickly.
“No one can replace AirAsia’s 100 planes in the country overnight,” he said.
AirAsia controls about 60 per cent of Malaysia’s domestic market. The airline’s shares closed 21 per cent lower on Sept 17 following the Reuters report and were trading another 2 per cent lower on Sept 18 after falling as much as 5 per cent earlier.
The stock has lost more than 70 per cent of its value so far this year. - September 18, 2026
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