PUTRAJAYA has made no commitment to bail out AirAsia through government guarantees, loans or injections of public funds, the Ministry of Finance (MOF) said, despite mounting cost pressures on the airline linked to the Middle East crisis.
In a written parliamentary reply on Oct 19, MOF said it was monitoring the aviation sector’s exposure to global fuel prices and currency movements, as well as the implications for air connectivity.
It was responding to Ayer Hitam MP Datuk Seri Dr Wee Ka Siong, who asked whether the government was considering financial assistance for the private airline group.
The ministry acknowledged AirAsia’s latest quarterly losses, which the company attributed mainly to a sharp rise in jet fuel prices following developments linked to the Middle East conflict.
AirAsia’s importance to domestic travel is reflected in its passenger numbers. It accounted for about 41 per cent of the 104.5 million passenger movements at Malaysia Airports Holdings Bhd-operated airports in 2025 and nearly 60 per cent of domestic passenger traffic.
Its share was even higher at several airports, particularly in Sabah and Sarawak. AirAsia carried 70 per cent of passengers in Sarawak and 62 per cent in Sabah, excluding short take-off and landing airports.
Sibu recorded the highest share among the listed airports at 79 per cent, followed by Bintulu at 77 per cent and Sandakan at 75 per cent. The airline accounted for 72 per cent of passengers at Kuching, 70 per cent at Tawau, 63 per cent at Miri and 62 per cent at Kota Kinabalu.
In Peninsular Malaysia, AirAsia handled 70 per cent of passengers in Johor, 56 per cent in both Terengganu and Langkawi, 49 per cent in Alor Setar and 46 per cent in Kelantan. It also accounted for three-quarters of passenger movements at Kuala Lumpur International Airport Terminal 2.
The ministry said it regularly engaged with aviation industry players, technical experts and other stakeholders to assess the impact of the crisis on the sector.
Any request for government assistance would be evaluated based on national and public interests, fiscal sustainability and the protection of public funds, in accordance with existing laws and procedures.
It added that it would not comment on media speculation or reported figures to avoid affecting the market or the interests of workers, customers and other stakeholders. - October 20, 2026