AirAsia Launches New Airline, Raises Capital from Rp 10 Trillion Bond

Co-founder of AirAsia X, Tony Fernandes, has unexpectedly announced plans to launch a new airline amid the global aviation industry’s challenges from surging world oil prices. This bold expansion is driven by the belief that growing during a crisis will yield significant rewards in the future.

Citing a Business Times report, the new airline is scheduled to be officially announced in one or two months. The Southeast Asian low-cost carrier (LCC) group has reportedly begun relocating some aircraft to support the new business line under preparation.

Fernandes expressed this optimism in a video interview from Montreal on Wednesday (6 May 2026). The 62-year-old entrepreneur emphasised that he does not want to waste opportunities arising amid current global market uncertainties.

“Why waste a crisis? There are opportunities in a crisis. We can’t control what’s happening in the Middle East, but we must assume it won’t last two years,” said Tony Fernandes.

This expansion plan follows AirAsia’s order worth billions of dollars for 150 Airbus A220 aircraft. This step is part of Fernandes’ vision to expand the fleet with smaller, more agile planes to reach every corner of Asia.

However, the airline’s strategy has come under sharp scrutiny due to their decision to continue avoiding fuel hedging. This policy has triggered a roughly 35 percent drop in AirAsia’s shares since the Iran war began, making it the worst performer on the Bloomberg World Airlines index during that period.

“Clearly, those who hedged are profiting now, but over the longer term, hedging never really works. So we continue not to hedge like many American airlines, and we believe oil prices will trend downwards,” Fernandes stated defiantly.

To fund this ambitious expansion, AirAsia is preparing to sell bonds worth up to US$600 million (Rp 10.35 trillion). Additionally, the company is in talks with Malaysian banks for large-scale refinancing loans to reduce interest costs.

Fernandes also plans to meet Canadian pension funds to attract new investors. Despite the aggressiveness, he acknowledged that the airline is unlikely to meet its initial profit targets and will soon announce adjustments, although annual revenue is expected to remain stable.

“The company won’t meet its initial profit targets, something the company will soon announce. Revenue for this year will be similar to predictions, more or less,” Fernandes added.

Currently, AirAsia operates in various Asian countries including Malaysia, Thailand, and Indonesia with a total fleet of around 250 aircraft. In addition to potential expansion into Vietnam, AirAsia has recently announced flights from Bahrain with ambitions to establish a local unit in the Gulf island nation.