AirAsia Group Bhd recorded a net loss of RM527.16 million for the second quarter of 2026, after facing rising fuel costs and foreign exchange losses.
For the same period, the group recorded revenue of RM5.08 billion.
Fuel Costs Become Major Burden
Fuel costs were among the biggest causes of AirAsia's losses when average fuel prices increased 66% compared to the previous quarter. The increase was driven by geopolitical tensions due to conflicts in West Asia.
AirAsia's aircraft fuel expenses reached RM2.80 billion in the quarter. At the same time, aircraft maintenance and repair costs amounted to RM537.34 million, while usage charges amounted to RM506.51 million.
Foreign Exchange Losses Also Pressure Performance
AirAsia also recorded a net foreign exchange loss of RM330.97 million. The loss came after several regional currencies including the ringgit, Thai baht, Indonesian rupiah and Philippine peso weakened against the US dollar.
For the first six months of 2026, AirAsia recorded a net loss of RM682.04 million, while group revenue reached RM11.03 billion.
Flight Capacity to be Cut
To ease pressure from high fuel costs, AirAsia plans to reduce seat capacity by 20% to 25% in the third quarter of 2026.
The group will also return 25 older and less fuel-efficient aircraft to lessors.
With jet fuel prices still high and geopolitical uncertainties, AirAsia said operating conditions remain challenging.
The group also did not recommend any dividend payment for the quarter ending June 30, 2026.
