AirAsia Shares Slide 3.29 Pct Amid Funding Uncertainty, Rising Fuel Costs

KUALA LUMPUR, Oct 20 (Bernama) -- AirAsia Group Bhd shares dipped 3.29 per cent amid the airline's ongoing financial woes following the spike in jet fuel prices due to the West Asia conflict.

At 3.51 PM, AirAsia trimmed 1.5 sen to 44 sen, with 11.08 million shares traded.

The group is actively seeking fresh funding to counter severe headwinds from surging jet fuel prices and foreign exchange losses and was reported to have the backing of the Finance Ministry on its fundraising effort.

In September, AirAsia Group Bhd co-founder and adviser Tan Sri Tony Fernandes said the group has not had any discussions with the government over financial assistance and remains confident in its liquidity and business sustainability.

Yesterday, the Finance Ministry said it has not made any commitment to provide financial assistance to the airline, whether in the form of guarantees, financing or injection of public funds.

In a response to the Dewan Rakyat published on the Parliament’s website, the ministry stated that applications for government support from any company will be evaluated based on the nation's interests and the well-being of the people, fiscal sustainability, and the protection of public funds.

This evaluation will be conducted according to existing laws and procedures.

It also said the government has taken note of issues raised concerning AirAsia, including the losses reported in its latest quarterly financial results.

-- BERNAMA