AirAsia Group (AAGB) investor relations material

Executive summary

• Revenue for Q2 2026 was RM5.1 billion, down 1% YoY despite an 11% capacity reduction, reflecting strong pricing power and yield discipline.

• EBITDA was RM443 million, a 56% YoY decline, with a 9% margin, impacted by a 58% surge in fuel expenses and significant forex losses.

• Net loss for Q2 2026 was RM831 million, mainly due to higher fuel expenses and RM331 million in foreign exchange losses.

• Proactive measures included fare hikes, capacity cuts, and cost discipline to mitigate fuel price shocks and preserve margins.

• About 30% of the fleet was non-operational as part of ongoing rationalisation and capacity optimisation.

Financial highlights

• Revenue: RM5,086 million (-1% YoY); EBITDA: RM443 million (-56% YoY, 9% margin); Net loss: RM831 million.

• Average fare increased 21% YoY to RM296; RASK up 11% YoY to 21.28 sen.

• Operating CASK rose 23% YoY to 22.72 sen, driven by a 77% YoY increase in fuel costs; non-fuel CASK dropped 7% YoY to 11.02 sen.

• Cash balance at RM954 million and shareholder's equity at RM483 million as of June 2026.

• Net foreign exchange loss for the quarter was RM331 million.

Outlook and guidance

• 3Q26 seat capacity expected to be down 20–25% YoY to protect margins during the lean season.

• 4Q26 capacity to ramp up close to pre-war levels to capture peak year-end demand; forward bookings remain robust.

• Fares expected to remain firm in core Asean and domestic markets; dynamic surcharge flexibility retained.

• Up to USD1 billion in funding and RM700 million in local facilities in the pipeline, including potential bond issuances.

• Management is withholding updates to internal targets due to persistent geopolitical and energy market volatility.