KUALA LUMPUR (March 5): AirAsia X Bhd (KL:AAX) fell on Thursday amid a global selldown in airline stocks as escalating Middle East tensions threaten to raise fuel costs and reroute flights.

Shares of AirAsia fell as much as 26 sen or 15% to close at RM1.42, its lowest since September 2025. The stock has lost some 28% of its value since the start of the US-Israel attack on Iran over the weekend. Singapore Airlines Ltd has fallen nearly 7%, while Cathay Pacific Airways Ltd dropped more than 8%.

Analysts have warned of mounting pressure on the airline’s earnings, flagging the strong price correlation between crude oil and jet fuel. Every US$1 (RM3.94) increase in jet fuel costs could shave off RM80 million or 5.3% from AirAsia X’s bottom line, according to Hong Leong Investment Bank’s estimates.

Oil prices have surged with the global benchmark Brent hitting US$84 per barrel due to the mounting supply disruption concerns from the conflict.

The sharp decline of AirAsia X on Thursday also triggered an automatic suspension in intra-day short-selling. Trading of its shares under the intra-day short-selling framework will resume at 8.30am on March 6, according to a special announcement.

Trading activity was unusually heavy on AirAsia X shares, with volume surging to 90.26 million shares, making the counter the most traded across Bursa Malaysia.

AirAsia X has reversed all of the gains made since the start of 2025 from optimism over a stronger ringgit and Visit Malaysia Year 2026 tourism prospects. The stock is now down 18.4% on a year-to-date basis.