{
  "id": 8199508,
  "title": "AirAsia co-founder says carrier has strong liquidity",
  "url": "https://urgent.news/2026/09/18/airasia-co-founder-says-carrier-has-strong-liquidity",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-18T07:42:25.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/stock-market-news/airasia-cofounder-says-carrier-has-strong-liquidity-93CH-4906778"
  },
  "original_language": "en",
  "account": "AirAsia co-founder Tony Fernandes stated on Friday that the budget airline possesses robust liquidity to navigate the increasing expenses of jet fuel, in response to investor concerns regarding the company's financial status following a dip in its shares to a four-year low. During a press conference in Bangkok, Fernandes revealed that AirAsia anticipates raising over $1 billion by December or January, primarily aimed at refinancing existing debt. He underscored the company's financial management skills.\n\nFernandes recalled that the COVID-19 pandemic was significantly worse than the current situation, noting that the airline was unable to fly then but is capable of doing so now, with strong demand. The briefing came after a report on Wednesday that Malaysia's government questioned Malaysia Airlines and Batik Air about the possibility of absorbing AirAsia's domestic market share, described as scenario planning as authorities monitor the carrier's financial health. Rising jet fuel prices due to the Iran war have impacted airlines globally, leading to the bankruptcy of US carrier Spirit Airlines in May and Latvia's airBaltic filing for Chapter 11 bankruptcy on Monday.\n\nAs of June 30, AirAsia reported current liabilities of 18.4 billion ringgit ($4.52 billion) against cash and bank balances of 954 million ringgit. Fernandes identified the second quarter as the most challenging period for the airline, which commands around 60% of Malaysia's domestic market. He projected improved circumstances as AirAsia adjusts fares to accommodate higher fuel costs. The loss-making airline's fuel costs increased by 66% in the second quarter to an average of $183 per barrel. AirAsia has no hedging arrangements in place.\n\nThe airline's shares have plummeted approximately 24% since Wednesday, reaching the lowest point since December 2022, and have shed more than 70% of their value this year. Malaysia's finance ministry enlisted Alton Aviation Consultancy to evaluate AirAsia's funding requirements as it considers potential support due to the airline's significance to the local economy. Fernandes affirmed that AirAsia had not received any government assistance in the past 25 years and explicitly stated there were no discussions with the government, adding that they do not seek rescue or bailouts.\n\nHe emphasized that no one can substitute AirAsia's 100 planes in the country overnight, citing the need for their cost structure, brand, market, and network. AirAsia disclosed this month that it is engaging in discussions with financial institutions, aiming to secure up to $1 billion from international debt markets and 700 million ringgit in local credit facilities, primarily for debt restructuring. The refinancing is not about raising new capital but about lowering costs, according to Fernandes. He disclosed that AirAsia is in talks with a major global bank on a bond transaction and received an offer from a Middle Eastern investor for $1 billion in funding with a term sheet signed pending due diligence, but the group is holding out for better terms.\n\nAirAsia's load factor was 80% in the third quarter, with strong bookings for the fourth quarter, according to Fernandes. He expressed optimism about operations in Indonesia, the Philippines, and Thailand. The carrier has been restructuring, discontinuing underperforming routes, returning 25 older aircraft to lessors, and renegotiating vendor contracts to reduce costs. Fernandes stated that no planes have been repossessed or their returns forced by lessors. AirAsia is set to announce a significant development with Airbus within the next month regarding its growth and strategy.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}