The carrier fell as much as 5.7% or seven sen to RM1.15, valuing the group at RM3.86 billion. The stock has fallen 42% since the Middle East crisis erupted on Feb 28 when Iran was attacked by the US and Israel.
It was the second most actively traded stock on Bursa Malaysia with 99.5 million shares changing hands.
In an exchange filing yesterday, AAX announced a net loss of RM154.9 million for the quarter ended March 31 (Q1 FY2026) from a net profit of RM50.2 million a year ago, and RM191.8 million in Q4 FY2025.
However, revenue for the quarter jumped to a record RM5.95 billion, following the completion of the acquisition of Capital A Bhd’s aviation business in January.
The Q1 loss was primarily due to a RM232.2 million forex loss arising from the depreciation of regional currencies, including the baht, rupiah and peso against the US dollar.
It was a double whammy for the carrier as the Middle East war sent the price of oil and jet fuel soaring. AirAsia X had to bear an additional fuel cost of around RM200 million in March alone.
Jet fuel, which accounts for about a third of an airline’s total operating costs, soared to a high of US$234 (RM924.31) on March 30. Jet fuel prices have eased to around US$150 (RM592.54) currently, which is still about 50% higher than pre-war levels.
AAX has raised ticket prices, temporarily suspended 21 routes and plans to reduce second-quarter capacity by 10% from a year earlier.
Meanwhile, Public Investment Bank (PublicInvest) downgraded AirAsia X to “neutral” while Maybank Investment Bank and Hong Leong Investment Bank have maintained their “buy” calls.
In a note today, Maybank Investment Bank warned of larger losses for AAX in the next quarter but noted that an easing of jet fuel prices could help narrow its losses in the second half.
In maintaining its “buy” recommendation, Hong Leong Investment Bank said it does not expect the war to be a prolonged one and believes “AAX is capable of avoiding a PN17 (Practice Note 17) classification”.
The bank lowered its target price for the stock to RM2.20 per share from RM3.35 previously, adding that at the current share price, “valuations remain attractive”.
PublicInvest has cut its FY2026-FY2028 earnings forecasts by an average of 28% to reflect the capacity reduction, weaker passenger growth and yields.
It noted the airline is shoring up its balance sheet and preserving cash, having secured US$300 million (RM1.18 billion) in favourable financing to refinance debt and lower its principal obligation for the year.
The bank also lowered its target price for AAX to RM1.29 from RM1.85 previously.