KUALA LUMPUR: AirAsia X Bhd
(AAX) said elevated jet fuel price volatility and geopolitical uncertainties have prompted the group to adopt a more disciplined approach focused on protecting yields and margins, despite a strong start to 2026.
For the first quarter ended March 31, 2026 (1Q26), the carrier posted a net loss of RM158.9mil, mainly due to foreign exchange losses of RM232mil, on revenue of RM5.95 bil.
In 1Q26, it recorded earnings before interest, taxes, depreciation and amortisation (Ebitda) of RM1.01bil and a net operating profit (NOP) of RM199mil, translating into Ebitda and NOP margins of 17% and 3% respectively.
Passenger demand remained strong in 1Q26, with the group carrying 18.9 million passengers, up 9% year-on-year, while maintaining an 85% load factor amid a 10% increase in capacity.
The group was impacted by elevated fuel prices in late March, with jet fuel briefly exceeding US$200 per barrel, resulting in an additional fuel bill of about RM20 mil for its Malaysian operations due to weekly fuel price adjustments.
In a statement, AirAsia Group CEO Bo Lingam said the group had begun the year with the successful consolidation of its airlines under a single aviation platform, but external pressures were beginning to weigh on operations.
“We are navigating a period of tactical agility, prioritising yield and margin protection over volume,” he said.
Bo said the group had temporarily suspended 21 routes and strategically reduced capacity by 10% in the second quarter compared with a year earlier to ensure flights were deployed only to markets meeting minimum return thresholds.
“AirAsia Group is deliberate in enhancing capacity discipline during these trying times,” he said, adding that the company remained flexible enough to restore capacity as fuel prices showed signs of easing in recent weeks.
The group also secured US$300mil in financing during the first quarter of 2026 to refinance debts and reduce principal obligations for the year.
“Building on this momentum, the Group is targeting to finalise private or public bond offerings in the second to third quarters of 2026, while continuing to work with local and foreign financial institutions for further refinancing and working capital needs,” Bo said.
He said AirAsia Group remained committed to its long-term ambition of building the world’s first truly low-cost network carrier, supported by the delivery of its first A321LR aircraft in April and its order of 150 A220 aircraft.
“This aircraft order ensures that we future-proof our fleet with significantly improved fuel efficiency and trip costs, fortifying our resilience regardless of where the cycle goes,” he added.
