KLSE:AAGB

AirAsia Clarifies Strategy for $1 Billion Debt Refinancing

AirAsia (KLSE:AAGB) clarified that its planned fundraising is aimed at debt restructuring and balance sheet consolidation, not funding operational shortfalls.The airline plans to raise up to $1 billion in international debt markets and 700 million ringgit in local credit facilities.The company plans to replace high-interest, pandemic-era debt with a unified debt structure with extended maturities and lower costs, AirAsia said.Addressing recent capacity cuts, AirAsia said its 20% to 25% reduction in the third quarter was a deliberate strategy for seasonal travel patterns, with capacity expected to ramp up in the fourth quarter.AirAsia's shares rose 3.5% in recent trade.