Malaysia rules out AirAsia financing as fuel costs strain carrier
Why it matters: AirAsia handled about 41% of passenger traffic at Malaysia Airports Holdings sites in 2025 and nearly 60% of domestic travel.
Malaysia's Finance Ministry said it has made no agreement or commitment to provide financing support to AirAsia, despite concerns over the budget carrier's finances after jet fuel prices rose. In a written parliamentary reply dated Oct. 19, the ministry said it was monitoring the aviation sector and AirAsia's recent quarterly losses, which were linked to higher fuel costs stemming from the US-Israeli war with Iran. It added that any support request would be weighed against national interests, fiscal sustainability and protection of public funds. AirAsia co-founder Tony Fernandes had said earlier talks with the government centered on aviation costs such as airport charges and fuel, not direct financial aid.