KUALA LUMPUR: While concerns surrounding rising oil prices linger unabated as the war in Iran continues, AirAsia X Bhd
’s prospects remain steadfast in line with demand growth, said the group’s founder and Capital A Bhd chief executive (CEO) Tan Sri Tony Fernandes.
He said one of the driving forces for the increase in demand, which should help the airline group recover heightened fuel costs, was due to capacity having been transferred from Gulf-based airline companies.
Still, Fernandes acknowledged that with higher oil prices, AirAsia X would need to increase travel fares.
“However, we are confident that the increase in our fares will be less than that of other airlines,” he reassured travellers.
Fernandes said this latest episode of volatility is one of many that the airline industry had seen, maintaining that the Covid-19 lockdowns were “much worse”.
While pointing out that Capital A – which had completed the divestment of its airline business to AirAsia X in mid-January this year – is unaffected by higher oil prices, he noted the distinction in how each entity would be impacted.
Fernandes added that AirAsia X’s management team would be speaking in greater detail next week about the effects of rising fuel prices and the direction the company is likely to take in the near future.
Despite the divestment, which essentially distanced Capital A from its former airline division, the group’s share price receded in tandem with AirAsia X due to oil price-related worries since the conflict in Iran entered a more explicit stage on Feb 28.
According to the group’s bourse announcements, Capital A has recorded four consecutive quarters of profitability, underscoring a sustained recovery in its financial performance.
For the latest quarter ended December 2025 (4Q25), the group posted a net profit of RM10.2bil, bringing the total bottom line for 2025 to RM13bil.
Fernandes revealed the group has applied to Bursa Malaysia to be officially uplifted from its current Practice Note 17 (PN17) status, with him anticipating that Capital A would be ready with its audited accounts to be submitted to the regulator by April 10.
Capital A officially completed its PN17 regularisation plan following the lodgement of a sealed High Court order confirming a capital reduction of RM5.51bil.
“We were also profitable in 1Q26, which would show that our performance has not been affected by the higher oil prices,” he said.
Notably, the public listing of its core businesses – namely Asia Digital Engineering, Teleport, AirAsia Move, AirAsia Next and Santan – will be dependent on Capital A exiting its PN17 status.
Fernandes further said that the group is looking to list AirAsia Next in the United States.
AirAsia Next is Capital A’s brand and intellectual property management business.
“We believe AirAsia Next is a wonderful company that jives with the Americans’ preference for brand loyalty. They like our rewards programme, and we hope to list AirAsia Next in the United States before year-end.”
Meanwhile, he said Capital A’s board has also approved the possibility of listing the group in Hong Kong, before remarking: “We are not letting this crisis go to waste.”
Moreover, Fernandes said the current geopolitically volatile environment means that there will be excess capital in China, Greater Asia, Europe and the United States, with investors casting a keen eye on Asean companies.
“We have appointed bankers, and the listing could potentially happen in July or August this year.
“So in all, there will be two listing exercises this year itself involving Capital A.”
Separately, Fernandes announced the appointment of Effendy Shahul Hamid as Capital A’s deputy CEO, effective April 6, as the group strengthens its leadership structure following a strategic shift in its business focus.
In his new role, Effendy is expected to support strategic planning and execution across the group, with an emphasis on aligning operations among its various business units as Capital A pursues regional growth.
Fernandes said Effendy’s background is relevant to the group’s current direction, observing that the latter’s experience and leadership style make him a natural fit for Capital A’s next phase of growth, adding that Effendy “understands how ecosystems create value” and has a “track record that speaks for itself”.
Fernandes noted that Capital A aims to accelerate development across its businesses through digital innovation and expects Effendy to contribute to that effort.
Effendy said the role presents an opportunity to work within a business model centred on technology and ecosystem expansion.
“The ability to derive value anchored on superior technology use and ecosystem expansion is what I believe the best companies of the future will need to possess,” he said.
He added that he intends to work with the leadership teams across Capital A and AirAsia X to support business development and operational execution. Effendy also indicated interest in exploring financial services initiatives within the group, citing its existing ecosystem as a potential platform.
“Its strong ecosystem access and use cases provide an ideal platform to demonstrate what the future could look like in this vertical,” he said.
Effendy brings more than 20 years of experience in the financial services sector, particularly in banking, digital transformations, and partnerships.
He spent 21 years at CIMB Group Holdings Bhd, where he held various leadership roles, including overseeing its regional retail operations and digital banking initiatives.
He was also involved in partnerships and investments, including efforts related to the development of Touch ‘n Go’s digital payments platform through its joint venture with Ant Group.
He began his career in corporate development and investment banking, focusing on mergers and acquisitions and business expansion.
Effendy holds a degree in Electronic Engineering from University College London and has attended executive programmes at Harvard Business School, INSEAD and Columbia Business School.
The appointment reflects Capital A’s ongoing efforts to strengthen its management team as it advances its post-aviation business strategy.
