AirAsia Seeks $1.17 Billion to Refinance Pandemic Debt

AirAsia Group is seeking to raise more than $1 billion in international debt markets and 700 million ringgit ($173 million) in local credit facilities. The airline intends to use the funds to refinance high-cost debt obligations incurred during the Covid-19 pandemic.

The company stated the funding strategy is designed to consolidate existing facilities into a lower-cost structure with extended maturities to reduce interest drag. This financial push follows reports of liquidity strains and missed supplier payments, driven by surging fuel costs and two consecutive quarterly losses following the outbreak of war in Iran.

AirAsia reported a 527 million ringgit net loss last quarter, marking its largest loss in four years. Since February, the carrier has become the worst-performing airline stock in the Bloomberg World Airlines Index, with its share price declining 64%. The airline has previously secured funding through a $230 million private credit bond arranged by Deutsche Bank Immobilien GmbH in April and a $443 million package provided in part by Tron: Ares in 2024.