AirAsia Group Bhd posted a net loss of RM830.5 million for the second quarter ended June 30, 2026 (2Q26), as a sharp spike in fuel costs and foreign exchange losses weighed on earnings despite resilient revenue and higher yields.
Revenue was broadly steady at RM5.1 billion, down 1% year-on-year, even as capacity was reduced by 11%, reflecting the group’s strategy of prioritising yields over volume.
Revenue per available seat kilometre rose 11% to 21.28 sen, supported by fare adjustments and dynamic fuel surcharges.
Fuel expenses surged 58% year-on-year as average jet fuel prices climbed to US$183 per barrel, although the group still recorded positive EBITDA of RM442.6 million, down 56%.
The bottom line was also hit by a RM331 million foreign exchange loss. Excluding this, AirAsia Group said its net loss would have been RM499.6 million.
Performance was dragged mainly by short-haul operations in Thailand, the Philippines and Indonesia, as well as long-haul operations in Malaysia. Its short-haul businesses in Malaysia and Cambodia remained profitable.
The group has since suspended underperforming long-haul routes, delayed the launch of its Bahrain hub and reduced fleet allocations in the Philippines and Indonesia to focus on higher-yield domestic and core ASEAN routes.
Cost controls helped cushion the impact, with cost per available seat kilometre excluding fuel falling 7% to 11.02 sen following cuts to non-essential spending, vendor optimisation and deferred capital expenditure.
AirAsia Group said it recovered around 70% of the higher fuel burden through fare increases and lower non-fuel costs, with average fares rising more than 20% year-on-year in May and June.
The airline is also returning 25 older aircraft in FY26 while preparing for new A220 and A321XLR deliveries from 2028.
On liquidity, the group is pursuing up to US$1 billion in funding and RM700 million in local facilities, alongside plans for a targeted bond issuance.
AirAsia Group CEO Bo Lingam described 2Q26 as the group’s “floor quarter”, saying the airline does not expect jet fuel prices to remain at the extreme levels seen during the period.
For 3Q26, the group plans to trim capacity by 20% to 25% year-on-year before restoring capacity towards pre-war levels in the fourth quarter as year-end travel demand strengthens.
