AirAsia co-founder Tony Fernandes sought to reassure investors that the airline's financial strain is far less severe than during the Covid-19 pandemic, despite the stock losing more than 70% this year. The carrier controls roughly 60% of Malaysia's domestic market and has 18.4 billion ringgit ($4.52 billion) in current liabilities against 954 million ringgit in cash and bank balances. Malaysia's government has approached Malaysia Airlines and Batik Air about their ability to absorb AirAsia's domestic capacity in a scenario-planning exercise, Reuters reported, although officials have not confirmed the outreach publicly. AirAsia recorded an 831 million ringgit net loss in the quarter ended June 30, including 331 million ringgit in foreign-exchange losses, after jet fuel prices rose 66% from the previous quarter to an average of $183 a barrel. Fernandes said the second quarter was the airline's most difficult period but pointed to an 80% third-quarter load factor, strong fourth-quarter bookings and sufficient liquidity. Analysts will closely monitor whether fare increases can offset fuel costs, while the stock decline has revived questions about potential equity funding or asset sales if high fuel prices persist.