AirAsia brushes off financial concerns, says cash position strong
AIRASIA Group Bhd remains financially sustainable with strong liquidity and does not need a government bailout, group adviser Tan Sri Tony Fernandes said on Friday, as he sought to quell concerns over the airline’s finances following a heavy second-q...
AirAsia Group Bhd, under the guidance of its adviser Tan Sri Tony Fernandes, maintains its financial stability and does not require a government bailout, despite a significant loss in the second quarter. The airline reported a net loss of RM831 million for the quarter ended June 30, driven by soaring jet fuel costs and foreign-exchange losses.
Fernandes stated that the airline had more than RM1 billion in cash and its current financial challenges are much less severe than those faced during the Covid-19 pandemic. The company's load factor stood at 80 percent in the third quarter, and bookings for the fourth quarter were strong. AirAsia holds a dominant position in Malaysia's domestic market, controlling about 60 percent of the market, and its fleet cannot be quickly replaced by other airlines.
Despite the recent share-price sell-off, Fernandes expressed optimism about the airline's operations in Indonesia, the Philippines, and Thailand.
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