AirAsia records RM527mil Q2 net loss as fuel, forex bite
KUALA LUMPUR: AirAsia Group Bhd posted a net loss of RM527 million in the second quarter (Q2) of financial year 2026, weighed down by higher fuel expenses and foreign exchange losses.
AirAsia Group Bhd reported a net loss of RM527 million in the second quarter of 2026, with rising fuel costs and foreign exchange losses as contributing factors. The airline attributed the increase in fuel expenses to a 66% rise in average fuel prices, driven by geopolitical tensions in the Middle East. Additionally, the company recognized net foreign exchange losses of RM331 million due to the depreciation of several local currencies against the US dollar.
AirAsia's revenue in the quarter was RM5.09 billion, despite an 11% reduction in capacity, as the company focused on maintaining yield discipline. Revenue per available seat kilometre (ASK) increased by 11% year-on-year to 21.28 sen, thanks to strategic fare adjustments and fuel surcharges. In the first half of the year, AirAsia posted a net profit of RM682 million on revenue of RM11 billion.
AirAsia Group CEO Bo Lingam described Q2 as the peak of energy market volatility and anticipated a normalization of jet fuel prices in the coming quarters. The company acted swiftly to reduce unviable capacity, particularly in long-haul operations, and expects a return to profitability in Q3 and Q4. Looking ahead, AirAsia plans to trim Q3 capacity by 20-25% year-on-year to maintain unit economics and capitalize on the eventual recovery of the industry in the second half of the year.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
