AirAsia to launch new airline as Tony Fernandes shrugs off fuel price pressures

KUALA LUMPUR, May 7 — AirAsia X Bhd co-founder Tan Sri Tony Fernandes says the airline group is preparing to launch a new carrier, pressing ahead with expansion plans despite market volatility and elevated fuel prices affecting the aviation sector.

According to The Edge, Fernandes said the new airline could be announced within the next one or two months, with aircraft already being reassigned for the venture, though he did not disclose further details.

Speaking in Montreal after AirAsia’s major Airbus aircraft order announcement, Fernandes said the group viewed the current industry uncertainty as an opportunity rather than a setback.

“Why waste a crisis? There are opportunities in a crisis,” he said in an interview cited by Bloomberg.

The expansion follows AirAsia’s order for 150 Airbus A220 aircraft, a deal described by Canadian Prime Minister Mark Carney as the largest-ever purchase of Canadian-made commercial jets.

Fernandes also defended AirAsia’s long-standing strategy of not hedging fuel costs, despite the company’s shares falling sharply since the start of the Iran conflict.

“Obviously people who hedge now are in the money, but over a longer period, hedging never really works,” he said, adding that the airline expects oil prices to ease eventually.

To support its expansion plans, Fernandes said AirAsia is looking to raise up to US$600 million (RM2.35 billion) through bond sales and is negotiating refinancing facilities with Malaysian banks to reduce borrowing costs.

He added that the group is also engaging Canadian pension funds as part of efforts to attract investors.

Fernandes acknowledged that the company may miss its earlier profit target for the year, although revenue is still expected to remain broadly in line with forecasts.

AirAsia has also been linked to possible expansion plans in Vietnam and recently announced intentions to launch flights from Bahrain as part of plans to establish a Gulf-based operation.