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AirAsia's CEO has admitted the airline has a cash squeeze driven by high fuel costs, but says it is not closing and flights are running as normal. In an interview with Nikkei Asia near Kuala Lumpur International Airport, Group CEO Bo Lingam acknowledged a liquidity problem while ruling out a government rescue. The airline is raising US$1 billion, and the news is worth watching if you plan to fly AirAsia to or from Thailand.
What the CEO said
Bo Lingam told Nikkei Asia that the airline is not closing, that operations are normal, and that aircraft deliveries are on schedule. He also ruled out a government rescue. Rumours of one pushed the share price sharply lower in September. Lingam says the business generates cash daily, so cash remains after lease payments.
The numbers
| Item | Figure |
|---|---|
| Q2 (April to June) loss | RM527 million (about 4.32 billion baht), the biggest quarterly loss in four years |
| Rise in fuel costs | 58% |
| Liabilities vs assets at 30 June | Liabilities exceeded assets by about RM600 million |
| Cash at 30 June | RM954 million, among the lowest of airlines tracked by Bloomberg |
The US$1 billion fundraising
AirAsia is raising US$1 billion (about 33.5 billion baht). Deputy CEO Farouk Kamal said US$500 to 550 million will consolidate existing debt into one loan, repaid in a single payment at maturity. This should ease short-term cash pressure. The rest goes partly to working capital.
Fleet and aircraft
Funding is in place for about 70 to 75 aircraft. Seven new planes are due in 2027 and 20 in 2028. At a Bangkok press conference, co-founder Tony Fernandes said AirAsia has 500 aircraft on order and will not convert them to cash. At the end of June, 161 of the 239 Airbus aircraft were in use.
Bloomberg reported on 18 September that AirAsia sold 6 of the 10 A321neo jets it had received since early last year to lessor BBAM, before they went to Vietnamese start-up Sun PhuQuoc Airways. Lingam explained that the six were leased aircraft accepted during the Covid-19 restructuring, with rent too high to be worth flying. They went back to lessors, and he called it a one-off.
What this means for travellers
Flights are running as normal, and no closure or grounding has been announced. The risk is financial, not operational. The airline is under cash pressure, but nothing suggests imminent disruption.
Some sensible precautions:
- Book refundable or flexible fares.
- Buy travel insurance that covers airline failure.
- Pay by credit card for chargeback protection.
Peak-season capacity into Phuket and Suvarnabhumi is expanding, according to related Thaiger headlines. Those headlines include AirAsia returning to Suvarnabhumi with 3 domestic routes, Thai AirAsia adding Phuket capacity for peak season, and AirAsia restoring 10 Asian routes for the 2026 high season. Treat the situation as something to monitor, not a reason to avoid AirAsia.
Information sourced from The Thaiger.