AirAsia co-founder Tony Fernandes reassured investors that rising jet fuel costs (up 66% in Q2) and geopolitical tensions are manageable, with strong travel demand and 80% seat load factor supporting recovery. However, the carrier reported a 831M ringgit Q2 loss and faces 18.4B ringgit in liabilities, prompting Malaysian authorities to explore contingency plans with rival airlines—a significant concern for SMEs dependent on affordable regional aviation and logistics.