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AirAsia's Fernandes says carrier can withstand jet fuel cost spike
Fernandes said AirAsia has strong demand and liquidity as jet fuel costs jumped 66% and the airline reported a RM831 million quarterly loss.
- On Friday, AirAsia co-founder Tan Sri Tony Fernandes rejected reports that the Malaysian government had approached rival airlines to absorb the carrier's domestic capacity, calling the claims the "most ludicrous statement" he has heard in 25 years.
- Shares of AirAsia fell 21% on Thursday to a four-year low after a Reuters report on Wednesday claimed the government sought contingency plans, triggering concerns about the carrier's financial position amid the Middle East conflict.
- The airline reported a net loss of RM831 million for the second quarter as jet fuel prices surged 66% to an average of $183 a barrel, forcing the company to adjust fares to cover operating costs.
- Dismissing rescue suggestions, Fernandes said the group is targeting up to $1 billion in international debt financing and 700 million ringgit in local credit facilities to refinance existing debt, denying any need for government assistance.
- With year-end travel demand picking up, AirAsia plans to restore capacity to pre-war levels, targeting 65 million to 70 million passengers this year while expecting an exciting announcement regarding growth strategy with Airbus next month.
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AirAsia did not request financial rescue from the Malaysian government and did not have any of its aircraft paralysed or picked up by default, declared on Friday the co-founder and advisor of the airline, Tony Fernandes. Exclusive material for subscribers. To have full access, access the link of the subject and register.
·Rio de Janeiro, Brazil
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AirAsia's Fernandes says carrier can withstand jet fuel cost spike
AirAsia co-founder Tony Fernandes said on Friday that the low-cost carrier had "strong liquidity" to weather soaring jet fuel costs, as he sought to ease investor concerns about the airline's financial health that have sent its shares to near four-year lows.
·London, United Kingdom
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Coverage Details
Total News Sources20
Leaning Left1Leaning Right6Center3Last UpdatedBias Distribution60% Right
Bias Distribution
- 60% of the sources lean Right
60% Right
C 30%
R 60%
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