AirAsia Group loses RM1.54b in market cap on Airbus probe, Wuhan virus

Tuesday 20 Oct 2026

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KUALA LUMPUR (Feb 4): AirAsia Group Bhd saw RM1.54 billion of its market capitalisation wiped off after its share price closed down for seven straight trading days, as investors reacted to the budget airline's corporate governance issues involving Airbus SE and evaluated AirAsia Group's business outlook amid China's virus outbreak, which started in Wuhan.

At Bursa Malaysia today, AirAsia Group shares closed down 13 sen or 10.16% at RM1.15, among Bursa's biggest decliners. AirAsia Group shares cut losses at 5pm, falling to its intraday low at RM1.12.

The group, which saw some 135 million shares traded when market closed, also ended among the exchange's top-active counters.

At AirAsia Group's closing share price of RM1.15 today, its market capitalisation stood at RM3.84 billion, based on the company's issued base of 3.34 billion shares.

The group's share price had finished down for seven straight trading days since Jan 24, when the stock closed lower at RM1.56. On Jan 23, its shares ended at RM1.61 for a market capitalisation of RM5.38 billion.

The deferred prosecution agreement entered into by Airbus and the UK Serious Fraud Office (SFO), appears to implicate executives of AirAsia.

AirAsia Group directors Tan Sri Tony Fernandes and Datuk Kamarudin Meranun said in a statement today that they categorically deny all allegations of wrongdoing or misconduct on their part as executives and directors of AirAsia, with regard to the deferred prosecution agreement.

"Caterham F1, the company alleged to have been sponsored improperly by Airbus, was at the relevant time, a Formula 1 Racing team that had gone round the globe promoting amongst others, AirAsia, AirAsia X, GE and Airbus. Throughout the period we were shareholders in Caterham, the company made no profits and was eventually disposed [of] for 1 pound sterling in 2014. From start to finish, this was a branding exercise and not a venture to make profits," they said.

Analysts have downgraded AirAsia Group shares, amid uncertainties from the Wuhan coronavirus outbreak and Airbus case. MIDF Amanah Investment Bank Bhd analyst Adam Mohamed Rahim wrote in a note today that MIDF adjusted its AirAsia Group share target price to RM1.20 from RM1.86, and downgraded the stock to Neutral from Buy.

Yesterday (Jan 3), Public Investment Bank Bhd analyst Nur Farah Syifaa' Mohamad Fu'ad wrote in a note that Public Investment's target price for AirAsia Group shares was lowered to RM1.21, from RM1.89 previously.

"Our sector call is cut to underweight, with stock rating on AirAsia (Group) correspondingly cut to trading sell," she said.

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