KUALA LUMPUR, June 18 — AirAsia X Bhd (AAX) was among the most actively traded stocks on Bursa Malaysia in early trade on Thursday, with analysts maintaining a ‘buy’ call on the airline on expectations of a strong recovery in the second quarter of 2026 (2Q 2026) driven by robust travel demand and easing cost pressures.
Hong Leong Investment Bank Bhd (HLIB) expects AAX to stage a strong recovery post-2Q 2026, underpinned by resilient passenger demand, normalising jet fuel prices and a weaker United States (US) dollar.
Travel demand remained resilient in the first quarter of 2026, with passenger traffic posting healthy growth across key regional markets, including Malaysia, which rose 12.1 per cent year-on-year.
However, the US-Iran conflict had lifted airfares, disrupted travel patterns, and, to some extent, weighed on demand since March 2026.
In response, airlines, including AAX, have implemented capacity rationalisation measures to better align supply with softer demand conditions in 2Q 2026.
“With the conflict now de-escalating meaningfully and jet fuel prices trending lower, we expect air travel to recover, especially in the Middle Eastern market.
“Combined with improving consumer confidence and easing geopolitical uncertainties, this should support a revival in regional air travel demand in the coming quarters, particularly towards the seasonally stronger 4Q 2026. AAX will also continue to leverage Visit Malaysia 2026,” it said in a research note.
The investment bank reiterated its ‘buy’ call on the stock with an unchanged target price of RM2.20.
AAX was among the most actively traded stocks on Bursa Malaysia as of mid-morning on Thursday, rising two sen to RM1.33 after 18.72 million shares changed hands.
