AirAsia's Fernandes refutes financial concerns, points to new growth plans

AirAsia's Tony Fernandes has responded to concerns over the airline's financial health, stating that the company remains sustainable with strong liquidity. According to Fernandes, AirAsia has over RM1 billion in cash and does not require a government bailout. The airline recently reported a net loss of RM831 million for the second quarter, attributed to soaring jet fuel costs and foreign-exchange losses.

Fernandes attributed the current challenges to geopolitical tensions and higher jet fuel costs, while noting that travel demand remains strong. He claimed that the latest pressure is "far, far" less severe than those faced during the Covid-19 pandemic. The airline has adjusted fares to reflect higher fuel prices, with Fernandes stating that earnings are catching up with costs.

Fernandes' comments come after a sharp share-price sell-off, with the group adviser seeking to quell concerns over the airline's finances. According to The Vibes, Fernandes told a media briefing that the airline is "okay" and "sustainable", highlighting its ability to manage cash and liquidity.

Brief written by urgent.news from CNBC, The Vibes — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.