AirAsia could launch another airline soon

AirAsia is reportedly preparing to launch a new airline within the next one or two months, according to co-founder Tony Fernandes. At the same time, the company is also planning to raise to USD600 million, which is around RM2350 million, through bond sales to support its expansion plans.

For your information, the update was shared during an interview in Montreal on 7 May 2026. Fernandes said the group is already moving several aircraft for the upcoming airline project, although further details about the airline, including its branding, routes, and release dates, have not been revealed yet.

AirAsia continues expansion despite rising fuel prices

Additionally, the announcement comes shortly after AirAsia confirmed a major aircraft order involving 150 Airbus A220 planes. The deal was described as one of the largest purchases of Canadian-made commercial aircraft. According to Fernandes, the smaller and more fuel-efficient aircraft will help the airline expand routes across Asia more efficiently.

Despite ongoing concerns over global fuel prices linked to tensions in the Middle East, AirAsia appears to be maintaining its current strategy. Fernandes said the company still does not plan to hedge fuel prices, even as some airline companies benefited from doing so during recent oil price spikes.

Besides that, this decision reportedly affected AirAsia’s market performance, with the company’s shares falling around 35% since the start of the Iran conflict. However, Fernandes believes oil prices could eventually decline again over the longer term.

AirAsia is seeking refinancing and new investors

Besides the planned RM2350 million bond issuance, AirAsia is also reportedly in talks with Malaysian banks for a refinancing loan that could lower its interest costs. Fernandes also mentioned plans to meet Canadian pension funds to attract additional investors into the business.

At the same time, the company expects some short-term financial pressure. Fernandes admitted that AirAsia may not achieve its earlier profit targets this year, although projected revenue is still expected to remain close to previous forecasts.

Expansion plans beyond Malaysia

AirAsia is also reportedly exploring further regional growth opportunities. Previous reports suggested the airline has discussed expansion into Vietnam. The group currently operates airlines in Malaysia, Thailand, and Indonesia, with a fleet of around 250 Airbus aircraft.

Separately, AirAsia recently announced plans to launch flights from Bahrain, with ambitions to establish a Gulf-based airline unit there in the future. For now, the company’s latest move signals that AirAsia is still pushing ahead aggressively with growth despite global aviation challenges and fuel cost concerns. The strategy could reshape the group’s presence in Asia and the Middle East over the next few years.

So, what do you think about AirAsia launching another airline while expanding aggressively across Asia and the Gulf region?

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