KUALA LUMPUR (Sept 17): AirAsia Group Bhd (KL:AAGB) fell on Thursday to the lowest in nearly four years amid mounting concerns over the low-cost airline’s financial health.
The decline comes on the heels of a Reuters report on Wednesday that the Malaysian government has asked national flag carrier Malaysia Airlines and full-service airline Batik Air whether they could absorb AirAsia’s domestic market share.
AirAsia declined to comment, saying that a briefing will be held on Friday.
AirAsia fell as much as 14 sen or nearly 22% to 50 sen, its lowest since December 2022. The stock was trading at 50.5 sen at 4.00pm as more than 133 million shares exchanged hands, making it the second most active stock on Bursa Malaysia.
Shares of AirAsia have lost more than 70% of their value since the year began as the airline grappled with soaring jet fuel prices amid the prolonged Iran War. At the last price, the company has a market capitalisation of under RM1.7 billion.
AirAsia is seeking up to US$1 billion, or over RM4 billion, in international debt markets and another RM700 million in local credit facilities in what the company has said is mainly aimed at debt restructuring or refinancing and balance sheet consolidation, rather than purely funding operational shortfalls.
Net loss widened to RM527.16 million in the three months ended June 30, 2026, prompting the airline to cut seat capacity by 20% to 25% year-on-year in the subsequent quarter. AirAsia has also suspended underperforming long-haul routes and delayed the launch of its proposed hub in Bahrain.
AirAsia also suffered foreign exchange losses from the depreciation of local currencies, including the ringgit, Thai baht, Indonesian rupiah and Philippine peso, against the US dollar during the quarter.