Malaysia's Ministry of Finance has hired Alton Aviation Consultancy to assess AirAsia Group's funding needs, Reuters reported, citing three sources familiar with the matter.

Reuters cited one source as saying the review could help determine whether the government should provide any support. Another source said there were no current plans for a bailout or government guarantee.

As ch-aviation previously reported, the group is seeking up to USD1 billion from international debt markets and MYR700 million ringgit (USD173.2 million) in local credit facilities, primarily to refinance and consolidate existing debt rather than cover operating shortfalls.

Deputy group chief executive Farouk Kamal told The Edge Malaysia newspaper that AirAsia intends mainly to refinance existing borrowings rather than increase its overall debt. It is considering consolidating the debt into a single instrument, potentially with principal repaid in a lump sum at maturity, and is targeting completion in the fourth quarter of 2026.

AirAsia posted a MYR830.5 million (USD205.5 million) net loss in the second quarter of 2026. As of June 30, its current liabilities exceeded current assets by MYR14.5 billion (USD3.6 billion), while deposits, bank and cash balances totalled MYR953.7 million (USD236 million).

The group had already been pursuing debt restructuring earlier in 2026, including plans disclosed in January to refinance and consolidate USD500-600 million of debt. It said it subsequently raised around USD300 million in March on improved terms to refinance debt, extend repayment deadlines, and reduce principal obligations.

Alton Aviation Consultancy declined to comment, while AirAsia Group and Malaysia's Ministry of Finance did not respond to ch-aviation's requests for comment by the time of writing.