Malaysia’s Finance Ministry said on Oct. 19 that the government has made no commitment to fund AirAsia, as the carrier seeks financing amid higher fuel costs and currency losses.
In a written answer to Ayer Hitam lawmaker Wee Ka Siong, the ministry said the government had not agreed to a guarantee, loan or injection of public funds. Officials would consider any request for support in light of national and public interests, fiscal sustainability and the need to protect public funds, the ministry said.
The ministry underscored AirAsia’s importance to air connectivity. At airports run by Malaysia Airports Holdings Berhad, the airline accounted for about 41% of 2025’s 104.5 million passenger movements, the ministry said. Its share of domestic movements was nearly 60%. In Sabah and Sarawak, AirAsia carried 62% and 70% of passengers, respectively, excluding short takeoff and landing airports.
AirAsia Group Berhad reported a net loss of 830.5 million ringgit for the quarter ended June 30, 2026. Fuel expenses climbed 58% from a year earlier, and the group recorded a 331 million ringgit foreign exchange loss.
The group said in August it was discussing up to $1 billion in financing with financial institutions, along with 700 million ringgit in local facilities.
Reuters reported on Oct. 12, citing people familiar with the discussions, that possible government backing for the fundraising had been discussed. AirAsia co-founder and adviser Tony Fernandes confirmed meeting officials but told Reuters his talks concerned costs such as fuel and airport charges, rather than financial assistance.
The ministry said it was monitoring the Middle East crisis, fuel prices and currency movements for their effects on aviation. It declined to address speculation or figures in media reports, citing potential effects on markets and AirAsia’s stakeholders. Fernandes told Reuters he expected the proposed $1 billion fundraising to be completed between December and February.
