AirAsia is cutting its seat capacity by up to 25 per cent in Q3 2026 as soaring fuel costs contributed to a RM527.16 million net loss in the latest quarter. — AFP pic First Published: Thursday, 13 Aug 2026 7:48 PM MYT KUALA LUMPUR, Aug 13 — AirAsia Group Bhd, formerly known as AirAsia X Bhd, posted a net loss of RM527.16 million for the second quarter ended June 30, 2026 (2Q FY2026), mainly due to higher fuel expenses and foreign exchange losses.Revenue stood at RM5.08 billion for the quarter, the group said in a filing with Bursa Malaysia today.“The loss was mainly attributable to higher fuel expenses after average fuel prices rose 66 per cent from the preceding quarter, driven primarily by heightened geopolitical tensions arising from the conflict in West Asia,” it said.The group also recognised a net foreign exchange loss of RM330.97 million due to the depreciation of regional currencies, including the ringgit, Thai baht, Indonesian rupiah and Philippine peso, against the US dollar during the quarter.Aircraft fuel expenses amounted to RM2.80 billion, while maintenance and overhaul costs stood at RM537.34 million and user charges at RM506.51 million, it said.For the six months ended June 30, 2026, the group reported a net loss of RM682.04 million on revenue of RM11.03 billion.No comparative figures were presented due to the reverse acquisition of AirAsia by AirAsia Aviation Group Ltd (AAAGL), as explained in Notes 1b and 2.1 to the interim financial statements.The group said AAAGL, a privately held company, was not required to and had not prepared interim financial statements before the reverse acquisition.On prospects, AirAsia Group said the operating environment remained fluid amid geopolitical instability and volatility in energy markets, with jet fuel prices rising above US$140 a barrel after briefly moderating in June.In response to elevated fuel costs, the group plans to cut seat capacity by 20 to 25 per cent year-on-year in the third quarter of 2026, while accelerating fleet optimisation by returning 25 older and less fuel-efficient aircraft to lessors during the financial year.Given persistent geopolitical uncertainties, volatile energy prices and the need to adjust capacity according to market conditions, the group said it was prudent to withhold updates to its internal targets at this juncture.The board did not recommend any dividend for the quarter ended June 30, 2026.AirAsia Group is an aviation services group that became the enlarged holding company for the AirAsia aviation businesses following the completion of its acquisitions of AirAsia Aviation Group Ltd and AirAsia Bhd from Capital A Bhd in January 2026.The company changed its name from AirAsia X Bhd to AirAsia Group Bhd effective July 2, 2026, following shareholders’ approval in June.The acquisitions resulted in the financial results and financial positions of the acquired entities being consolidated into the group from their respective acquisition dates. — Bernama