AirAsia Group Clarifies Capital Raising and Fleet Optimisation Strategy

Focuses on Debt Restructuring and Consolidation, Dynamic Q4 Demand Ramp-Up and Expanding Group-wide Fuel Hedging

SEPANG, 2 September 2026 - AirAsia Group Berhad ("AirAsia" or "the Group") (formerly known as AirAsia X Berhad) has issued a formal clarification regarding recent media coverage concerning its ongoing capital-raising activities and fleet management strategy.

The Group clarifies that its planned fundraising exercises, comprising up to US$1.0 billion in international debt markets and RM700 million in local credit facilities, are primarily targeted at debt restructuring/refinancing and balance sheet consolidation, rather than purely funding operational shortfalls. This strategy aligns with previous public disclosures regarding capital structure optimisation. Demonstrating execution capability and market confidence, the Group successfully raised ~US$300 million in March 2026, at the height of global market escalations and fuel volatility, to proactively extend debt tenures and reduce principal obligations. 

The primary objective of the funding strategy is to consolidate multiple existing facilities into a unified, lower-cost debt structure with extended maturities and better terms. This exercise will allow the Group to refinance high-cost debt obligations incurred during the height of the COVID-19 pandemic, significantly lowering annual interest drag, optimising non-fuel unit costs (CASK ex-fuel), and securing liquidity for strategic working capital.

Deputy Group CEO, Farouk Kamal said: "Our current capital market initiatives represent a proactive balance sheet optimisation opportunity. We are leveraging our banking and financier relationships to systematically replace legacy, high-interest pandemic-era debt with streamlined, long-term facilities. This will optimise our capital structure, lower interest expenses, and build significant financial flexibility as we transition back into sustainable growth."

To protect operating margins against macro energy volatility, AirAsia continues to execute a multi-layered risk management strategy framework. In 2Q26, the Group successfully recovered 70% of fuel price increases through dynamic fare adjustments and reduced non-fuel operational expenses. Complementing this, AirAsia is actively establishing a broader fuel hedging strategy across the wider group. Specifically for Thai AirAsia (TAA), the Group has secured 13% of its 3Q26 fuel consumption hedged at US$89 per barrel.

Addressing media coverage on third-quarter operations, AirAsia clarified that its 20–25% capacity adjustment in 3Q26 is a deliberate operational strategy aligned with seasonal travel patterns. The third quarter historically represents the leanest period for regional air travel. The Group will dynamically scale capacity back toward peak and pre-war levels in 4Q26, aligning with the strongest travel window of the year.

Furthermore, with long-haul and short-haul operations now consolidated under one Group, AirAsia is able to optimise asset allocation across its entire network more effectively than before. This has enabled strategic commercial adjustments, such as swapping widebody A330s to narrowbody aircraft on routes like Kuala Lumpur-Seoul, and temporary suspension of certain routes, such as Kuala Lumpur to Sydney and Delhi.  AirAsia prioritizes absolute route profitability over raw aircraft utilization, ensuring every deployed asset delivers optimal financial returns. This underscores a level of network and operational flexibility that the Group's consolidation was designed to unlock.

Complementing network changes, the strategic return of 25 older, less fuel-efficient aircraft during the period was negotiated on favorable commercial terms. This rightsizing eliminates fixed lease burdens and reduces non-fuel unit costs ahead of new aircraft deliveries scheduled for 2028 and beyond.

Deputy Group CEO, Farouk Kamal added: "Managing capacity during low-demand quarters is financial discipline expected of us. Rather than burning cash in a seasonally slower quarter, we chose to trim excess capacity, return older aircraft on favorable terms, and lower our overall lease obligations. This preserves yields and positions our operational fleet to hit maximum utilization in Q4, when regional travel demand reaches its peak.

“Reinforcing the operational disciplines outlined in our 2Q26 financial results, AirAsia remains focused on maintaining non-fuel CASK discipline, dynamic fare adjustments, and strict cash preservation to deliver sustainable long-term shareholder value.”