‘Ludicrous statement’: AirAsia co-founder Tony Fernandes refutes report claiming it needs government bailout
Addressing reporters during an online briefing on Friday (Sep 18), he said “no such conversations happened”.
AirAsia planes stand on the tarmac at Kuala Lumpur International Airport Terminal 2 (KLIA2) in Sepang, Malaysia, on Jan 21, 2026. (File photo: Reuters/Hasnoor Hussain)
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KUALA LUMPUR: AirAsia co-founder Tony Fernandes has refuted a news report claiming that the low-cost carrier needs a government bailout.
Addressing reporters at a media briefing in Bangkok on Friday (Sep 18), Fernandes slammed a Reuters report published this week that quoted sources who said the Malaysian government had asked rivals Malaysia Airlines and Batik Air whether they could absorb AirAsia’s domestic share.
Discussions had increased in recent weeks amid growing concerns over AirAsia’s financial woes, Reuters said in its Sep 16 report which quoted two unnamed sources “with knowledge of the matter”.
Reuters added that the sources described this as part of scenario planning while authorities monitor the financial health of Southeast Asia’s largest low-cost airline.
“It’s the most ludicrous statement I have seen in 25 years,” Fernandes said in a series of comments carried by Malaysian media outlets.
He also called the Reuters report “irresponsible” and added that it contained inaccuracies.
“Nothing, nothing, we are not getting (anything) from the government. I don’t know where this story comes from,” Fernandes said when asked for comment.
“My top sources said no such conversations happen … Kill it (the story) already. We do not need rescuing or bailouts whatsoever,” he added.
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AIRASIA “TAKING DISCIPLINED APPROACH”
In its report on Wednesday, Reuters noted that AirAsia had reported a net loss of RM831 million for the second quarter ended Jun 30.
The airline was also “hit by soaring jet fuel costs stemming from the US-Israeli war on Iran that surged 66 per cent in the second quarter from the prior quarter to an average of US$183 a barrel”, Reuters said.
The carrier had been restructuring aggressively, cutting underperforming routes, returning 25 older aircraft to lessors and renegotiating contracts with vendors to reduce costs, the report added.
On Friday, Fernandes said that challenge like soaring jet fuel costs were “far, far” less severe than those it faced during the COVID-19 pandemic.
He also added that strong demand for air travel continued to support the business.
He told reporters that the second quarter of 2026 marked the toughest period for AirAsia and forecast improving conditions as the airline adjusted fares to reflect higher fuel costs.
In its media statement on Friday, AirAsia said that the group’s resilient low-cost model, combined with strategic fare optimisations and ancillary revenue growth, positions it to absorb these industry-wide pressures as it remains focused on long-term growth.
“We have been through many crises before in our 25-year journey, with COVID-19 being by far the most challenging,” said Lingam.
“What is different today is that people can still fly and travel continues.”
The airline is also taking a “disciplined approach to managing the business”, Lingam said, sharing that the airline had managed to recover around 70 per cent of fuel price increases through dynamic fares and lower non-fuel operating costs.
It also reduced passenger capacity by 20 to 25 per cent in the third quarter of the year, said to be a “weaker travel period in the region”.
The airline is now preparing to increase capacity back towards pre-war levels in the fourth quarter of the year, in line with the region’s peak year-end travel season, the statement added.
“We are managing industry-wide headwinds from a position of strength, executing a clear and strategic plan for sustainable and profitable growth,” the statement said.
“We are encouraged by the outlook for the peak fourth quarter and remain confident in the long-term potential of AirAsia. Our focus is on the fundamentals of our business and we will not be distracted by unsubstantiated speculation from anonymous sources.”
Source: Agencies/ia(ht)
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