AirAsia sells six brand-new Airbus A321neo jets amid cash crunch

AirAsia Group Bhd., strained by rising fuel prices and limited cash reserves, has sold six newly delivered Airbus A321neo jets to lessor BBAM LLC, which have since been taken up by Vietnam’s Sun PhuQuoc Airways. Unlike typical sale-and-leaseback arrangements, the aircraft were never operated by AirAsia, indicating an urgent need for liquidity. Industry commentator Andrew Light described the transaction as an unusual but clean way to raise cash.

The airline’s financial pressure has been amplified by a recent surge in jet fuel costs following a Middle-East conflict, leading to its largest quarterly loss in four years. AirAsia’s cash on hand fell to RM954 million by the end of June, and its share price has dropped sharply since the conflict began. The carrier also plans to return 25 older planes this year as part of a fleet optimisation effort.