THINKING ALOUD

AirAsia’s funding woes test how far Malaysia will go to protect its budget champion

The group’s airlines carried nearly 70 million passengers in 2025 and now connect over 150 destinations

Summarise
Anita Gabriel
Published Thu, Sep 17, 2026 · 07:00 AM
    • With no fuel hedges and a heavily leveraged balance sheet, AirAsia Group has posted a second-quarter net loss of RM831 million.
    • With no fuel hedges and a heavily leveraged balance sheet, AirAsia Group has posted a second-quarter net loss of RM831 million. PHOTO: REUTERS

    WHEN British billionaire and Virgin Group founder Richard Branson put his name and money behind AirAsia X in 2007, he was backing Tony Fernandes – a man Branson had known since the Malaysian entrepreneur began his career at Virgin’s music and media business in London nearly two decades earlier.

    Branson’s investment in AirAsia X was a bet on Fernandes as much as on the fledgling long-haul budget carrier.

    With his knack for spotting underserved markets, Fernandes was eager to capture the segment of travellers who wanted to fly farther but could not afford conventional fares.