Tony Fernandes Speaks Out on AirAsia's Financial Condition
BANGKOK, KOMPAS.com - AirAsia founder Tony Fernandes stated that the low-cost carrier has strong liquidity to withstand the surge in jet fuel prices.
Fernandes made the remarks on Friday (18/9/2026) amid investor concerns about AirAsia's financial condition, which pushed the airline's share price close to its lowest level in nearly four years.
According to Reuters, speaking at a media briefing from Bangkok, Thailand, Fernandes revealed that AirAsia has cash management capabilities and is preparing financing exceeding 1 billion US dollars, or approximately Rp 17.74 trillion (assuming an exchange rate of Rp 17,738 per US dollar).
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Most of this funding will be used to refinance existing debt. The fundraising is targeted to be completed by December 2026 or January 2027.
"We have strong liquidity," Fernandes said.
He compared AirAsia's current situation to the pressures the airline faced during the Covid-19 pandemic.
"The Covid situation was far, far worse than what we are facing now. Back then, we couldn’t fly, but now we can, and demand is very high," Fernandes explained.
In other words, Fernandes emphasized that the Covid-19 pandemic was a much graver challenge than the present conditions.
During the pandemic, AirAsia couldn’t operate normally; now, flight demand remains robust.
KOMPAS.com/SAKINA RAKHMA DIAH SETIAWANAirAsia founder Tony Fernandes states the airline has strong liquidity to face the surge in jet fuel prices.
Fernandes' statement comes amid the government’s and investors’ growing attention to AirAsia’s financial health, as it is the largest low-cost carrier in Southeast Asia.
Two days before the briefing, Reuters reported that the Malaysian government had inquired with Malaysia Airlines and Batik Air about the possibility of these carriers absorbing AirAsia’s domestic market share.
According to sources cited by Reuters, this move is part of scenario planning as the government monitors AirAsia's financial stability.
AirAsia controls approximately 60 percent of Malaysia’s domestic market, making its financial condition a key concern in the country’s aviation industry.
Investor concerns are also reflected in AirAsia’s stock performance; its share price has dropped around 24 percent since the Reuters report was published on Wednesday (16/9/2026).
AirAsia’s shares hit their lowest level since December 2022, having lost more than 70 percent of their value this year.
AirAsia is under pressure as aircraft fuel prices have increased due to the conflict in Iran.
This fuel price spike has impacted airlines worldwide.
Reuters noted that the surge in jet fuel prices contributed to the collapse of the heavily indebted US airline Spirit Airlines in May 2026.
KOMPAS.com/SAKINA RAKHMA DIAH SETIAWANAirAsia founder Tony Fernandes states the airline has strong liquidity to face the surge in jet fuel prices.
Additionally, Latvian airline airBaltic filed for bankruptcy protection under Chapter 11 on Monday (14/9/2026).
For AirAsia, rising fuel prices directly increase operational costs.
Reuters reported that AirAsia’s fuel expenses jumped 66 percent in the second quarter of 2026 compared to the previous quarter, with an average fuel price of 183 US dollars per barrel.
At an exchange rate of Rp 17,738 per US dollar, this equates to about Rp 3.25 million per barrel.
AirAsia does not engage in fuel hedging, which means the increases directly impact its costs.
This situation makes rising jet fuel prices a critical focus in the airline's cost management.
Fernandes said the second quarter of 2026 was the toughest period for AirAsia but expects improvement as the airline adjusts fares to offset higher fuel costs.
Financial data shows the significant liabilities AirAsia must manage.
