Tony Fernandes Addresses AirAsia's Financial Struggles

One of the founders of AirAsia, Tony Fernandes, has spoken out regarding the financial condition of the low-cost carrier. This follows reports that the airline’s finances are under scrutiny by the Malaysian government, amid calls for Malaysia Airlines and Batik Air to take over AirAsia’s domestic market share.

Quoting Reuters on Friday (18/9/2026), he stated that the challenges faced by the budget airline due to the surge in aviation fuel costs are “far lighter” compared to the challenges faced during the COVID-1 ung pandemic. He is working to reassure investors regarding the airline’s financial health.

In a press statement to the media, Fernandes also stated that AirAsia possesses strong liquidity and is proficient in managing cash flow. He added that the current crisis is largely triggered by geopolitical tensions and rising fuel prices, even as travel demand remains high.

He acknowledged that the second quarter (Q2) was the most difficult period for the airline, which controls approximately 60% of the Malaysian domestic market. However, he predicts that conditions will improve as AirAsia takes steps to adjust ticket fares to offset the increase in fuel costs.

Fernandes noted that the group’s load factor, which measures how effectively the airline fills available seats, has reached 80% in the third quarter (Q3). He is confident that there will be strong bookings for the fourth quarter (Q4).

At the same time, Fernandes emphasised that nothing could replace AirAsia’s 100 aircraft in the country in the short term. He expressed optimism regarding operations in Indonesia, the Philippines, and Thailand.

It is noted that AirAsia’s current liabilities were recorded at 18.4 billion ringgit (approximately IDR 80.04 trillion) as of 30 June, with cash and bank balances standing at 954 million ringgit (IDR 4.148 trillion).

The airline has been impacted by the surge in aviation fuel costs triggered by the US-Israel-Iran conflict. Fuel prices surged by 66% in Q2 compared to the previous quarter, reaching an average of US$183 per barrel (IDR 3.22 million per barrel).

In addition to rising fuel costs, the airline faced significant foreign exchange losses amounting to 331 million ringgit (IDR 1.43 trillion). AirAsia recorded a net loss of 831 million ringgit (IDR 3.599 trillion) for the Q2 ending 30 June.