KUALA LUMPUR – AirAsia Group Bhd remains financially sustainable with more than RM1 billion in cash, group adviser Tan Sri Tony Fernandes said, dismissing concerns over the low-cost carrier’s financial position.
Fernandes also denied that AirAsia had sought a government bailout, saying the airline’s earnings were beginning to catch up with rising costs after higher jet fuel prices weighed heavily on its second-quarter performance.
“We are okay, we are sustainable,” Fernandes said at a press conference on Friday, as quoted by The Edge.
“I have better things to do right now than have this press conference” because of an inaccurate article, he said.
“We are good at managing cash and we are strong in liquidity. Things get blown out of proportion when it’s AirAsia. I sneeze, it’s a big story.”
The remarks came after Reuters reported that the Malaysian government had asked national carrier Malaysia Airlines and full-service airline Batik Air whether they could absorb AirAsia’s domestic market share as authorities monitored the carrier’s financial position.
The report triggered a sharp sell-off in AirAsia shares when trading resumed on Thursday following a public holiday, with the stock falling to a four-year low.
Fernandes said the government had not made such a request.
“I can say confidently the government said we never said anything like that,” he said. “You cannot just say, ‘Oh, this airline is going to take AirAsia’s capacity.’ I mean, it’s the most ludicrous statement I have seen in 25 years.”
AirAsia shares fell another 4% to 48.5 sen on Friday, giving the company a market capitalisation of less than RM1.6 billion. The stock has lost more than 70% of its value since the start of the year as the airline contends with elevated jet fuel prices amid the prolonged conflict in the Middle East.
Fernandes said jet fuel prices, which can account for about one-third of an airline’s operating costs, were likely to remain at between US$170 and US$190 per barrel, significantly above the sub-US$100 levels seen before the war began in February.
Despite the pressure on costs, Fernandes said no AirAsia aircraft had been grounded because of non-payment and that the airline remained some distance from a point where higher fares would significantly undermine demand.
Still, the airline has yet to adopt a fuel hedging strategy because of the high cost involved, he said.
“We’ve been through many many crises, but we’ve always come out stronger,” Fernandes said at a briefing in Bangkok on Friday. “Covid was far, far worse than what we are dealing with now.”
AirAsia currently has a fleet of 250 aircraft, with the remaining 10 expected to be ready for service by October. The group has previously returned 25 older aircraft.
Bloomberg News reported that AirAsia had also taken the unusual step of offloading six newly delivered aircraft, including two in July, as it sought to manage its finances.
As of the end of June, AirAsia had RM954 million in cash and cash equivalents, among the lowest balances recorded by airlines tracked by Bloomberg globally.
Fernandes said the company remained confident in its ability to manage its liquidity despite the current challenges. - September 18, 2026
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