AirAsia in talks with Malaysian government over potential funding support

AirAsia is in discussions with Malaysia's Finance Ministry regarding potential government support, according to multiple sources familiar with the matter. The talks come after a surge in jet fuel prices, raising concerns about the financial health of the country's largest low-cost carrier. Malaysia's Finance Minister Anthony Loke has denied having any meetings with AirAsia, stating that airlines like AirAsia have regular meetings with the government.

AirAsia's co-founder and adviser, Tony Fernandes, has stated that no financial assistance discussions have taken place and that the airline is confident in navigating the situation without state aid. However, Fernandes is open to accepting help if offered by any government where AirAsia operates. The discussions have been prompted by soaring jet fuel costs, which have surged 66% in the second quarter, affecting airlines globally.