AirAsia fundraising effort targets US$1 billion with MOF backing
Sources say Alton Aviation Consultancy is seeking lenders and investors, with most of the proposed financing intended to address AirAsia’s debt and balance sheet.
AirAsia Group Bhd is the subject of a fundraising campaign targeting as much as US$1 billion (RM4.1 billion), led by Alton Aviation Consultancy and supported by Malaysia’s Ministry of Finance (MOF), people familiar with the matter told The Edge.
The sources said the ministry was helping the aviation adviser approach lenders and investors. Financiers have become more selective about airline funding as market conditions grow tougher and jet fuel prices rise.
MOF previously engaged Alton to assess the airline’s financing requirements. According to the sources, its mandate includes finding funding sources, while the ministry has supplied an undertaking or a form of guarantee that could facilitate substantial borrowing.
If Alton secures the financing, it would qualify for a success fee calculated as a percentage of the funds raised, the sources said. Alton had not responded to The Edge’s request for comment.
AirAsia has reportedly identified debt restructuring, refinancing and consolidation of its balance sheet as the main uses for the proposed funds. Operational requirements would account for the remainder.
The airline reported RM527.16 million in net losses for its second quarter, which ended June 30, 2026, against RM154.88 million a quarter earlier. Revenue was RM5.09 billion, down 14.5%. Average fuel costs reached US$183 per barrel in 2QFY2026, a 66% quarterly increase, while net forex losses widened to RM331 million.
At June 30, 2026, the airline’s net debt amounted to RM2.27 billion. Borrowings totalled RM3.13 billion, with RM803.2 million repayable within 12 months, while cash was RM953.67 million. It also recorded RM13.3 billion in lease liabilities, including deferred aircraft leases.
