Kuala Lumpur, October 21 – AirAsia Group shares fell sharply on Tuesday after Malaysian Prime Minister Anwar Ibrahim confirmed the government has not agreed to any financial support for the budget carrier. In a written parliamentary reply late Monday, Anwar, who also serves as finance minister, stated that authorities have entered into no agreement or commitment for guarantees, loans, or public fund injections. The stock tumbled as much as 5.5 percent to its lowest intraday level since November 2022, extending a 75 percent decline this year that ranks it as the worst performer in the Bloomberg World Airlines Index.
The clarification comes amid heightened scrutiny of AirAsia’s financial position. Anwar noted that any request for government assistance would be evaluated against national interest, public finances, and the need to safeguard taxpayer funds. Officials have held discussions with aviation sector companies to assess the broader effects of ongoing regional conflict, consistent with approaches taken in other industries, and will continue close monitoring of developments.
Surging jet fuel prices linked to the Iran war have pressured the low-cost airline, which does not hedge fuel costs and has recorded two consecutive quarterly losses. These challenges have intensified focus on the carrier’s efforts to secure $1 billion in debt refinancing. Earlier Bloomberg reporting indicated that AirAsia sold six newly delivered aircraft, that a unit lagged on supplier payments, and that the group sought to renegotiate terms on a $200 million private credit facility.
Last month, co-founder Tony Fernandes moved to address concerns over AirAsia’s finances. He rejected suggestions of a bailout or asset absorption by rivals, stating that liquidity remained solid, no aircraft had been repossessed, and the airline would emerge stronger from current pressures. The latest parliamentary statement underscores the absence of any formal Malaysian government commitment while the budget carrier navigates elevated operating costs and refinancing needs.