AirAsia surges 25% as oil prices tumble after US polls

AirAsia Group Bhd shares experienced a remarkable surge of 25% or 11.5 sen to 57 sen, catapulting the stock to a market capitalisation of RM1.81 billion. The surge came as crude oil prices plummeted sharply following the US midterm elections, where President Donald Trump's Republican Party suffered a significant defeat. Brent crude prices fell below US$100 per barrel, marking the lowest level since October 7.

The drop in oil prices, which peaked at US$118 per barrel last Friday but is currently around US$95, has been a significant relief for airline stocks burdened by soaring jet fuel costs since the Iran war erupted in February. Energy experts are closely monitoring the situation, eagerly awaiting signs that the election results could compel Trump to end the war without further escalation.

The airline, which employs around 17,000 people, had its share price plummet by 70% year to date, owing to the high jet fuel costs exacerbated by the ongoing conflict in the Middle East. Analysts predict that a further decline in fuel prices and the easing of geopolitical tensions are crucial for a sustained recovery in airline stocks.

AirAsia is reportedly seeking additional funding to tackle the headwinds from rising jet fuel prices and foreign exchange losses, which have contributed to a widening net loss of RM527.16 million for the second quarter ending June 30, 2026, up from RM154.88 million a year ago. Despite the challenges, AirAsia remains a dominant force in Malaysia's aviation sector, accounting for about 41% of the 104.5 million passenger movements recorded at airports operated by Malaysia Airports Holdings Bhd.