No agreement to support AirAsia financially, says govt

Prime Minister Anwar Ibrahim said the government will continue to monitor developments in AirAsia closely. (EPA Images pic) PETALING JAYA: The government has not agreed to give low-cost carrier AirAsia any form of assistance amid financial struggles caused by the effects of the Middle East conflict, says Prime Minister Anwar Ibrahim.

Anwar, who is also finance minister, acknowledged reports of AirAsia's massive losses caused by the surge in jet fuel prices.

He said the government held periodical engagements with aviation industry players to get their views on the impact of the Middle East crisis, the same way it does with stakeholders in other affected sectors.

"Any request for government support from a company in any sector will be considered based on national interests, fiscal sustainability and the protection of public funds.

"For now, the government has not made any agreement or commitment to offer financial support to AirAsia, whether in the form of guarantees, loans or injection of public funds," he said in a written parliamentary reply to Wee Ka Siong (BN-Ayer Hitam).

Wee asked Anwar to state whether the government would consider assisting AirAsia amid its ongoing financial issues.

Anwar said the government will continue to monitor developments in AirAsia closely and will not comment on speculation reported by the media.

Reuters previously reported that AirAsia was seeking to raise up to US$1 billion (RM4.08 billion) from international debt markets and secure RM700 million in local credit facilities, primarily to refinance existing debt.

AirAsia operated 66% of East Malaysia flights in 2025

The prime minister nonetheless pointed out that AirAsia played a crucial role in providing air connectivity to Sabah and Sarawak, serving 66% of flights to and from the East Malaysian states last year.

He said the airline handled 62% of Sabah's air travellers in 2025 and 70% of Sarawak's, except for short take-off and landing airports.

"Airports with the highest percentage of AirAsia passengers in both states were Sibu (79%), Bintulu (77%), Sandakan (75%), Kuching (72%), Tawau (70%), Miri (63%) and Kota Kinabalu (62%).

"In Peninsular Malaysia, states with the highest percentage of AirAsia passengers last year were Johor (70%), Terengganu (56%), Kedah (56% in Langkawi and 49% in Alor Setar), and Kelantan (46%).

“At KLIA Terminal 2, AirAsia flew three-quarters of the total passengers handled," he said.

Nationally, Anwar said the low-cost carrier handled 41% of the 104.5 million passengers at airports across the country, with nearly 60% domestic travellers.