Cash-strapped AirAsia takes unusual step of unloading new planes

AirAsia Group Bhd has sold six newly-delivered Airbus 321neo aircraft since the beginning of 2025, amid a financial crisis gripping the low-cost carrier. The airline holds only RM954 million (US$233 million) in cash and equivalents, one of the lowest balances among tracked airlines. The sales come after the company received 10 factory-fresh aircraft in 2025, half of which were recently leased to lessor BBAM LLC and subsequently acquired by Vietnamese startup Sun PhuQuoc Airways.

Analysts say selling such recently delivered planes, without any leaseback agreement, is uncommon. AirAsia's co-founder Tony Fernandes aims to modernize the fleet to tackle higher fuel costs. The airline's woes have intensified this year due to rising oil and jet fuel prices, exacerbated by the Middle East war. Fuel expenses surged 58% in the second quarter, resulting in the company's largest quarterly loss in four years.

AirAsia has been unable to hedge its fuel purchases, leaving it vulnerable to price fluctuations. The airline is reportedly seeking to use collateral from a private-credit loan to meet payments to lessors. AirAsia's share price has plummeted almost 75% since the Iran war began in February, making it the worst-performing stock in the Bloomberg World Airlines Index.