AirAsia's Fernandes says travel demand remains strong
HONG KONG - AirAsia co-founder Tony Fernandes said on Friday that the low-cost carrier's challenges from soaring jet fuel costs were "far, far" less severe than those it faced during the Covid-19 pandemic, as he sought to reassure investors about the airline's financial health.
AirAsia co-founder Tony Fernandes has said the company's current financial challenges are far less severe than those it faced during the Covid-19 pandemic. During a media briefing, Fernandes highlighted strong liquidity and efficient cash management at AirAsia, emphasizing that travel demand remains robust. The company's current liabilities of 18.4 billion ringgit, compared to cash reserves of 954 million ringgit, put it in a relatively healthy position.
Fernandes noted that the second quarter was the toughest for the airline, which controls about 60% of Malaysia's domestic market, as soaring jet fuel costs, driven by geopolitical tensions and higher fuel prices, hit the company. Despite a 66% increase in fuel costs to an average of $183 per barrel in the second quarter, AirAsia remains optimistic about its operations in Indonesia, the Philippines, and Thailand, with strong bookings expected for the fourth quarter.
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- AirAsia's Fernandes says travel demand remains strong bangkokpost.com
