KUALA LUMPUR: A whopping RM2.35 billion in market value has been wiped off AirAsia X Bhd since Monday, as investors rushed to exit airline stocks amid fears that surging crude oil prices could drive up jet fuel costs.
The low-cost carrier's shares were hit hard at the start of the week after weekend missile exchanges involving the United States, Israel and Iran stoked concerns that oil supply routes in the Middle East could face disruptions.
AirAsia X is now the only pure-play airline stock on Bursa Malaysia after Capital A Bhd consolidated its aviation businesses into the company, bringing all AirAsia-branded carriers under a single listed platform.
The counter closed Monday's session down 11.6 per cent, or 23 sen, to RM1.75 from RM1.98 previously, when the airline's market capitalisation stood at about RM6.65 billion.
The selloff extended throughout the week, pushing the stock down 14 sen, or 9.86 per cent, to RM1.28 at Friday's close, its lowest level in nearly a year, with more than 166 million shares traded.
This marks the counter's busiest session in more than four years and is about 31 times its 200-day average volume of 5.29 million shares. Similar trading volumes have been recorded daily since Monday's selloff.
Intriguingly, the stock had already started sliding even before oil prices became the market's main concern.
AirAsia X shares slipped for two straight sessions beginning Feb 27, when the airline released its financial results for the year ended Dec 31, 2025 (FY25).
For the fourth quarter, net profit more than tripled to RM78.6 million from RM22.6 million a year earlier, lifted by higher ticket fares and stronger ancillary revenue. Revenue rose six per cent to RM920.8 million.
The results received a thumbs up from analysts, but investors were less impressed. The stock fell seven sen, or 3.4 per cent, the following day to RM1.98, even before tensions in the Middle East rattled markets.
Including the two prior sessions, nearly RM2.9 billion in AirAsia X's market value has been erased over seven consecutive trading days.
On a year-to-date basis, the counter is now down 51 sen, or 28.5 per cent, from RM1.79 on Jan 2.
AirAsia X currently carries three "Buy" calls, including from Public Investment Bank Bhd (PublicInvest) and Hong Leong Investment Bank Bhd (HLIB), which have set 12-month target prices of RM2.80 and RM3.35, respectively.
PublicInvest raised its earnings forecasts for the next two financial years after the group's performance exceeded expectations. HLIB said AirAsia X is well positioned to benefit from strong regional air travel demand and resilient ticket yields.
Meanwhile, associate company Capital A, which holds a 19.5 per cent stake in AirAsia X, also saw its shares come under pressure this week, slipping to a one-month low of 43 sen on Friday, down 24.6 per cent from 57 sen the previous week.
On a year-to-date basis, however, Capital A's shares are still up about 7.3 per cent from 41 sen on Jan 2. At the current price, the company's market capitalisation stands at roughly RM1.95 billion.
Bursa Marketplace data showed three research houses have a "Buy" recommendation on Capital A, three have advised "Hold", while one has suggested "Sell".
Capital A recently completed its regularisation plan and is now in the final stages of being uplifted from Practice Note 17 status on Bursa Malaysia, with a target date set for the second quarter of 2026.
The company returned to the black in FY25, posting a net profit of RM13.03 billion, compared with a net loss of RM501.24 million the previous year. Revenue also rose 17 per cent to RM1.99 billion from RM1.70 billion in FY24.
PublicInvest and HLIB, which also track Capital A, maintain "Buy" calls on the stock with target prices of 72 sen and RM1.05, respectively.
Elsewhere, airline stocks across Asia and Europe also came under pressure this week as investors weighed the impact of rising oil prices and mounting geopolitical risks on the industry.
Shares of major carriers including Japan Airlines, Korean Air and Cathay Pacific all retreated, while Chinese airlines such as Air China, China Eastern and China Southern were also impacted.
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