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AirAsia X is moving forward with a debt restructuring of USD 500-600 million after acquiring Capital's short haul aviation business. The consolidation merges seven AirAsia branded airlines under AirAsia X to simplify operations and strengthen finances. The airline plans to resume London flights, expand to Istanbul, and develop a hub in Bahrain. Fleet expansion with Airbus A321LR and A321XLR aircraft will support long haul growth. Near term targets include USD6 billion revenue, 20 percent EBITDA margin, and passenger loads above 80 percent, while pandemic era loans will be gradually repaid over the next few years.
AirAsia X is preparing a debt restructuring valued between USD500 million and USD600 million following the acquisition of Capital A's short haul airline operations. The move is part of a broader consolidation strategy that combines seven AirAsia branded carriers into a single AirAsia X entity. The consolidation is aimed at simplifying financial structures, streamlining operations, and strengthening the airline's balance sheet. Advertisement
Deputy Group CEO Farouk Kamal explained that the refinancing plan focuses on extending loan tenures, reducing interest costs, and consolidating multiple financial obligations into more manageable instruments. This comes after Capital A was classified as financially distressed by Malaysia's stock exchange during the pandemic, when global travel restrictions caused a sharp decline in passenger demand and revenue.
AirAsia X is expanding its network and operations alongside the financial restructuring. The airline plans to resume London services to Gatwick and Stansted later this year, marking the return of long haul flights that were paused for over a decade. It has already restarted flights to Istanbul and aims to establish a hub in Bahrain to improve connectivity across Central Asia, the Middle East, Europe, and Africa.
Fleet growth is central to the expansion plan. AirAsia X is set to receive four Airbus A321LR aircraft this year to support long range operations. The airline previously ordered 50 Airbus A321XLR jets with conversion rights for 20 more and is discussing the possibility of adding up to 150 aircraft. The current fleet stands at 255 planes, providing a strong base for scaling up both regional and long haul routes.
Chief Financial Officer Low Kar Chuan noted that the combined airline is targeting near term revenue of USD6 billion, an EBITDA margin of 20 percent, and passenger loads above 80 percent. The group also plans to repay all bank loans taken during the pandemic over the next two to three years, gradually eliminating financial burdens incurred during the crisis.
Regulatory approvals completed in late 2025 cleared major hurdles for merging Capital A's aviation operations into AirAsia X. This consolidation allows the airline to operate more efficiently, manage costs effectively, and pursue growth opportunities in both long haul and regional markets.
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