KUALA LUMPUR: AirAsia Group Bhd shares plunged as much as 21% to the lowest in almost four years, after reports Malaysia’s government had asked other local airlines to potentially absorb the cash-strapped carrier’s domestic market share.
The talks with Malaysia Airlines Bhd and Batik Air are part of scenario planning as authorities monitor AirAsia’s financial health, Reuters reported, citing two sources.
Shares of sister company Capital A Bhd
fell as much as 18% to the lowest in more than a year.
At 5pm, AirAsia tumbled 21.09%, or 13.5 sen, to 50.5 sen, marking its biggest intraday decline since March 9 and its lowest level since December 2022.
Capital A fell 16.36%, or 4.5 sen, to 23 sen.
AirAsia didn’t respond to requests for comment.
The carrier, which last month reported its largest quarterly loss in four years, is seeking to amend terms of a US$200mil private credit loan, Bloomberg News reported earlier this week.
Earlier this month, it said plans to raise more than US$1bil in fresh funds were to refinance high-cost debt, pushing back against media reports that the airline was moving to shore up liquidity.
AirAsia’s finances have been squeezed after energy prices surged after the outbreak of war in the Middle East, with a lack of fuel hedging compounded the impact.
The stock has fallen almost 70% this year, the worst performance on the 56-member Bloomberg World Airlines Index. — Agencies
