News
AirAsia Group to cut capacity by up to 25% during Q3
August 17th 2026
AirAsia Group is reducing capacity across its network of LCCs by between 20% and 25% during the three months to September 30 amid high fuel prices. Read More » The airline group reported a net loss of 682 million ringgit (US$245 million) for the first half of calendar 2026. As this is the airline group’s first year reporting financial results since the bringing together of the AirAsia X- and AirAsia-branded carriers under the one roof, the company did not publish comparable performance from the same six-month period in 2025. Revenue was 11 billion ringgit for the period, AAX said in a regulatory filing. "The second quarter represented the peak of energy market volatility, and we are treating 2Q26 as our floor quarter," AirAsia Group CEO, Bo Lingham, said. "Looking into the second half of the year, the third quarter is historically the seasonally softest period for regional travel. We are taking a deliberate, tactical approach to protect our bottom line by trimming 3Q26 capacity by 20-25% YoY to ensure every flight clears our strict hurdle rates." The company said it was "actively advancing discussions" with local and international financial institutions for up to US$1 billion in funding and 700 million ringgit in debt facilities. It was also advancing plans for "targeted bond issuance".
