MANAMA (BAHRAIN): The strengthening ringgit is proving to be a boon for AirAsia, easing cost pressures and supporting the airline’s expansion plans.
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chief executive officer Tan Sri Tony Fernandes said about 70 per cent of AirAsia’s operating costs are denominated in United States (US) dollars, making a stronger ringgit advantageous for the group’s financial performance.
"From the profit-and-loss perspective, a stronger ringgit is definitely beneficial for us because most of our costs are in US dollars,” he told Bernama on the sidelines of the Kuala Lumpur-Bahrain-London new route launch on Wednesday.
The ringgit is currently at the 3.9 level -- a level not seen since 2018.
Fernandes added that the strengthening of the ringgit could also make overseas travel more affordable for Malaysians, potentially encouraging outbound travel, although the airline does not quantify demand growth based solely on currency movements.
Meanwhile, he said AirAsia is targeting to complete its rebranding and consolidation exercise by July 2026, subject to regulatory approvals.
"The restructuring aims to consolidate the AirAsia and AirAsia X brands into a single airline entity, and most integration processes have been completed.
"The group is currently awaiting regulatory approvals from several countries, including China and Japan, to facilitate route transfers and full operational consolidation," he said.
Fernandes said that once approvals have been obtained, the AirAsia X brand will eventually be merged into AirAsia to create a simpler and more unified brand structure.
He added that feedback from internal stakeholders on the rebranding initiative has been positive, noting that the move would simplify the group’s structure and strengthen brand clarity among customers and partners. - Bernama
