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AirAsia Group Bhd posted a net loss of RM527.16 million in the second quarter of its 2026 financial year, driven by higher fuel costs and a net foreign exchange loss of RM330.97 million.
Revenue for the quarter stood at RM5.08 billion.
The loss was driven mainly by higher fuel expenses, with average fuel prices rising 66% from the preceding quarter.
AirAsia attributed this to heightened geopolitical tensions from the conflict in West Asia.
Loss Extends Into First Half Of 2026
The loss extended into the first half of the year.
AirAsia recorded a net loss of RM682 million for the six months ended June, on turnover of RM11 billion.
AirAsia says the operating landscape remains fluid, citing geopolitical instability and volatile energy markets.
Earlier in the year, the group said it had passed on cost savings to passengers to help drive load factors, while fuel prices were lower.
Then energy prices spiked again, which AirAsia said prompted adjustments to air fares across all its airlines, aimed at protecting unit revenue, according to a filing.
AirAsia Cuts Seat Capacity In Response
The loss also lands just months after Capital A Bhd, AirAsia’s parent group, exited Practice Note 17 (PN17) status on Bursa Malaysia.
That exit, effective 20 May, concluded a six-year restructuring exercise that included the disposal of its aviation business and a major capital reduction to restore its financial position.
Capital A had been classified as a PN17 company back in January 2022, after its shareholders’ equity fell below the required threshold amid the severe impact of Covid-19 lockdowns on the aviation sector.
In response to the current quarter’s loss, AirAsia plans to cut seat capacity by 20% to 25% in the third quarter compared to the same period last year, and is returning older aircraft to lessors.
AirAsia said the operating landscape remains fluid, citing geopolitical instability and volatile energy markets as key risks for the remainder of the year.
READ MORE: AirAsia Blocked A Special Needs Girl From Boarding Because Of Her Medical Seat — But She’s Used It On Their Flights Before
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