AirAsia Group Seeks Up to $1 Billion in New Funding

AirAsia Group is advancing discussions with local and international financial institutions to secure up to US$1 billion in new funding as it strengthens liquidity following a challenging second quarter.

The airline group is also pursuing RM700 million in local financing facilities and plans a targeted bond issuance as part of its broader funding strategy.

The financing initiative comes as AirAsia restructures operations in response to higher fuel costs and weaker performance in several markets. The Group is returning 25 older aircraft during 2026 to reduce fixed lease costs, while securing future growth through new Airbus A220 and A321XLR deliveries beginning in 2028.

AirAsia reported second-quarter revenue of RM5.1 billion and EBITDA of RM442.6 million. It recorded a net loss of RM830.5 million, including RM331 million of foreign exchange losses.

The Group said it is reducing capacity, suspending underperforming routes and deferring non-essential capital spending as it works to improve liquidity and stabilize its financial performance during the second half of 2026.