the mgmt/insiders will have visibility of their earnings trend in coming qtrs. I believed a mixture of scr ( to reduce the share capital so that shareholder fund > 25% of share capital) and fund raising (to increase equity and cover for upcoming losses; keep the shareholders fund > 40mil) will be needed to pull the leg out from PN17

1HFY26 losses is at 682mil. Assuming same rate for 2HFY26, the current shareholders' funds of 483mil as of end of June will be wiped off and becomes negative. fund raising of the same scale of losses will be needed. amount of fund raising will be doubled if same scale of losses is anticipated in 1HFY27.

Share price was RM2.27 early this year (28 January 2026). Almost 70% wiped off based on current market closing price of 71.5 Sen today :-| That is why it is very important to track and monitor all ratios (liquidity, leverage, efficiency, profitability and market value) closely.

At this juncture, debt funding is way too expensive as even if available, private credit likely to be in double digits % and with very strict collateral terms. Cash to revenue ratio will be really ugly based on steep margin compression (or loss position) from current high jet fuel prices (averaging US$191) & capacity reductions.

As global average jet fuel price last week rose 1.0% compared to the week before to $187.34/bbl as at 2 October 2026, Q4 2026 and cash flows will be very tough despite Q4 being the usual aviation peak end of the year travelling season. Brent crude oil price range still elevated > US$100 !

scr + funding is the only way to stay out of pn17. Boss can say anything but when news of gomen is involved, and Bloomberg news on negotiation with Ares and Indies which the boss has denied are out there - the probability of Airasia in liquidity crunch is real and the survival depends on (1) fuel price whereby @panorama has mentioned above (2) funding/financing, how much and how fast can it secure the funding (3) how many new shares will be issued - rights issue/fundraising/dilution

With CURRENT LIABILITIES at > RM18 BILLION plus as at 30 June 2026, AA will need to raise massive funds urgently via guarantees given by government or Substantial Shareholders before end of QR4/AFS ended 31/12/2026 OR rights issue/placement of shares to see through current liquidity crisis (high trade payables position) as mentioned by Cheng above.

funding here includes refinancing. at risk of margin call if the bosses (Tony & Kamarudin) fail to get financing deals soon? look at the top 30 shareholders in AR2025 as of 31 Mar 2026. both bosses and their investment vehicle holding ~1bil shares and almost half of it are pledged shares.

That’s why they are looking at Corporate Exercises at Tune Protect (divestment) and CapA now but valuation low at this juncture based on AA predicament (inter-linked and reliance on AA business). Highly indebted companies all facing the same headache based on rising global borrowing yields and risks aspects.

According to the official U.S. Energy Information Administration (EIA) Spot Price Data, the physical transaction Brent crude oil prices recorded last week include :
October 16, 2026: USD$128.80
October 15, 2026: USD$124.95
October 14, 2026: USD$126.55
October 13, 2026: USD$125.78
October 12, 2026: USD$129.95
The average actual transacted price for the entire month of October 2026 YTD stands at USD$126.29 per barrel, creating a dramatic gap of roughly USD$15 to $20+ above the headline paper futures market (which sits near USD$108). The actual physical transacted spot price for Brent crude oil (FOB Europe) in October 2026 YTD is averaging significantly higher than the financial futures market, hovering between USD$125.00 and USD$135.51 per barrel. Average global jet fuel for week ended 16 October 2026 was USD$192.44 per barrel !