No agreement to provide financial support to AirAsia, says government

KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim has stated that the government has not reached an agreement to provide financial support to the struggling low-cost carrier AirAsia, amid financial troubles stemming from the Middle East conflict. As Finance Minister, Anwar emphasized that any request for government assistance from any sector would be evaluated based on national interests, fiscal sustainability, and public fund protection, all in compliance with relevant laws and procedures.

The government has made no commitment to support AirAsia, whether through guarantees, loans, or injections of public funds, Anwar stated in a written parliamentary reply published on the Parliament website. He urged caution against media speculation and figures, aiming to avoid market fluctuations and protect employees, customers, and stakeholders of affected companies.

Anwar highlighted that the government remains vigilant about the aviation sector's developments, including the impact of the Middle East crisis, global fuel prices, and currency fluctuations on airlines and air connectivity for Malaysian citizens. The AirAsia Group played a significant role in the country's aviation ecosystem, accounting for about 41% of the 104.5 million passenger movements at Malaysia Airports Holdings Bhd-operated airports in 2025, and nearly 60% of domestic passenger movements.

The carrier's losses were primarily attributed to the sharp rise in jet fuel prices following the Middle East conflict. AirAsia carried 62% and 70% of total passengers in Sabah and Sarawak, respectively, in 2025, excluding short take-off and landing (STOL) ports. At KLIA Terminal 2, AirAsia handled three-quarters of all passengers.

Transport Minister Anthony Loke had previously mentioned the absence of recent meetings between his ministry and AirAsia, speculating on possible government support. However, Loke noted that any discussions on the matter might have involved the Finance Ministry.