Key facts
- AirAsia Group shares fell 21% on Thursday.
- Concerns over the budget airline's finances have intensified.
- Rising fuel costs due to Middle East tensions are a contributing factor.
- AirAsia Group expects to secure $1 billion in financing by January.
Shares in Malaysia's budget carrier AirAsia Group tumbled 21% on Thursday as concerns over its funding position and execution risks intensified. The airline is reportedly seeking $1 billion in debt financing amid pressures from rising fuel costs, which are being exacerbated by geopolitical tensions in the Middle East. The company's financial health and its ability to navigate these challenges have become a focal point for investors. AirAsia Group co-founder Tony Fernandes stated Friday that the airline expects to secure the $1 billion in financing by January.