the lenders have to take a huge 99% debt haircut during Covid. Who will be willing to experience that again without structural change from within Airasia? lets see whether fare increases will be able to minimise the losses in q3 and the status of financing plan. q4 will be ugly too. fare increases, less travel plans.

AAGB owes ~500mil to MAHB at the back of huge current liabilities and Zetrix AI owes JPJ 314mil at the back of 2bil sukuk covenant breached. That's a big headache for the government. https://www.klsescreener.com/v2/news/view/1816565/loke-govt-yet-to-decide-on-financial-support-for-airasia

Although Government support is absolutely necessary at such difficult period (prolonged average jet fuel prices and AA high current liabilities position) based on national interest, government finances absolutely stretched at present and immediate focus need to be on government fiscal sustainability and public fund protection. Brent crude oil prices (high correlation to jet fuel prices based on crack spread) still heading higher and higher until now into Q4 2026 and AA does not hedge on jet fuel oil prices.