AirAsia's Fernandes says travel demand remains strong, current crisis 'far' less severe than COVID

AirAsia co-founder Tony Fernandes stated that the current challenges faced by the low-cost carrier due to soaring jet fuel costs are "far, far" less severe than those experienced during the COVID-19 pandemic. According to Fernandes, travel demand remains strong despite the current crisis, which is largely driven by geopolitical tensions and higher fuel prices.

Fernandes also reassured investors about the airline's financial health, citing "strong liquidity" and effective cash management. The airline's second quarter was reportedly the toughest period, but Fernandes forecasts improving conditions as AirAsia adjusts fares to reflect higher fuel costs.

The Straits Times Business reported that AirAsia's current liabilities stood at RM18.4 billion as of June 30, against cash and bank balances of RM954 million. Additionally, the airline has been exploring new routes, including a brand new route from Karachi to Kuala Lumpur, providing affordable connectivity to Malaysia's capital.

Brief written by urgent.news from Business Recorder, Straits Times Business, Bangkok Post — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.