No agreement to support AirAsia financially, says govt

Prime Minister Anwar Ibrahim stated that the Malaysian government has not agreed to provide any form of financial assistance to the struggling low-cost carrier AirAsia, despite the carrier's significant losses due to soaring jet fuel prices caused by the Middle East conflict. Anwar, who serves as both the Prime Minister and Finance Minister, acknowledged the government's regular consultations with aviation industry stakeholders to assess the impact of the crisis, similar to their approach with other affected sectors.

However, the government has not made any commitments or agreements to support AirAsia through guarantees, loans, or injections of public funds. Wee Ka Siong (BN-Ayer Hitam) had inquired about potential government aid to AirAsia, but Anwar affirmed that the government's decision will be based on national interests, fiscal sustainability, and the protection of public funds.

The government will continue to monitor AirAsia's situation and refrain from commenting on media speculation. AirAsia played a crucial role in providing air connectivity to East Malaysia, handling 66% of flights to and from Sabah and Sarawak in 2025, with significant passenger volumes at major airports like Sibu, Bintulu, Sandakan, Kuching, Tawau, Miri, and Kota Kinabalu.

Nationally, the carrier handled 41% of the 104.5 million passengers at airports nationwide, with a majority of them being domestic travelers.