Cash-strapped AirAsia takes unusual step of unloading new planes

AirAsia Group has unloaded six newly delivered Airbus A321neo aircraft since the beginning of 2025, marking an unusual move due to the financial strain the airline faces. The Malaysian low-cost carrier sold half of these jets to a lessor, BBAM, who subsequently transferred them to Vietnamese start-up Sun PhuQuoc Airways. This action, which involves selling aircraft without leasing them back, is rare for airlines.

Analyst Andrew Light noted that such a disposal is uncommon and likely aimed at maximizing cash by avoiding large upfront purchase costs. The airline's troubles intensified in 2025 due to soaring oil and jet fuel prices, which hit low-cost carriers harder than full-service airlines as they struggle to pass on increased costs to passengers.

AirAsia, which does not hedge its fuel purchases, saw a 58% rise in fuel expenses in the second quarter, resulting in its worst quarterly loss in four years. The company's cash reserves have dwindled to RM954 million, one of the lowest among airlines tracked by Bloomberg. Despite owning 239 Airbus planes, only 161 are operational, with 25 older aircraft set to be returned in 2026. However, AirAsia has not commented on the sale of these brand new planes.