AirAsia is consolidating its airline brands, with AirAsia X Bhd to be renamed AirAsia starting 19 January 2026, as part of a major restructuring by sister company Capital A Bhd.
Founder Tan Sri Tony Fernandes announced this in a 13 January LinkedIn post. Pointing to the debt which “arose from Covid”, the completion of this restructuring will allow the group to move into its next phase of growth – an expected 30% margin on earnings.
He added that AirAsia is finalising its aircraft orders, and noted that “better fleet planning” would allow reduction of costs and increased margins.
AirAsia X currently only operates long-haul AirAsia flights, and is in the midst of a RM6.8 billion (US$1.68 million) acquisition of short-haul aviation businesses from Capital A Bhd.
Looking ahead, the group is exploring the development of a strategic hub in Bahrain, which will see them building a “low-cost version on Emirates and Qatar and cover all continents”.
The company will also apply for Capital A to be removed of its classification as PN17 – pegged to financially distressed companies, as established by Bursa Malaysia since the pandemic.