Kuala Lumpur, Sept. 1 – AirAsia Group, formerly AirAsia X, is turning to the international debt market to raise at least US$1 billion (RM4.03 billion) to shore up liquidity as the budget airline faces surging jet fuel prices and mounting losses after the Iran war. Sources say Singapore-based Alton Aviation Consultancy is assisting the low-cost carrier in securing the financing following two consecutive quarterly losses. An AirAsia spokesperson noted that material developments would be disclosed via proper channels and regulatory filings in due course. The move comes as AirAsia progresses capital management initiatives including talks with institutions for up to US$1 billion in funding and RM700 million (US$174 million) in local facilities plus targeted public and private bond issuances.
The airline reported a widened second-quarter net loss of RM527.16 million (US$131 million) from RM154.88 million (US$38 million) previously, with revenue falling 14.5 percent to RM5.09 billion (US$1.26 billion). A 66 percent quarter-on-quarter rise in average fuel prices and RM331 million (US$82 million) net forex losses as currencies weakened against the US dollar drove the deterioration. AirAsia entered the year unhedged, leaving it exposed to the global jet fuel price reaching US$158.91 per barrel, up 76.5 percent year-on-year.
Higher fuel surcharges of about 20 percent and airfares rising 30 to 40 percent aim to offset costs, though price-sensitive passengers limit full pass-through. AirAsia plans 20 to 25 percent third-quarter seat capacity cuts, route suspensions and returning 25 older aircraft while pursuing fleet renewal with Airbus A220 and A321XLR deliveries from 2028. As at June 30 2026 net debt stood at RM2.27 billion (US$563 million) with cash of RM953.67 million (US$237 million).
Earlier RM1 billion (US$248 million) private placement proceeds and US$300 million first-quarter financing supported working capital after the RM6.8 billion (US$1.69 billion) Capital A short-haul acquisition. The US$1 billion international debt market raise will test confidence in AirAsia Group’s post-restructuring position amid persistent fuel volatility.