Saudi Arabia’s sovereign wealth fund is set to invest USD 100 million in Malaysia’s Capital A-owned budget airline AirAsia. As reported by Bloomberg News, this initiative constitutes a significant portion of AirAsia’s aspiration to raise around 1 billion ringgit (approximately $225.99 million).

The airline is currently exploring additional investments from sources in Singapore and Japan, offering investors up to a 15% equity stake at a valuation of $2 billion. This strategy aims to facilitate recovery post-pandemic while addressing past financial losses.

The parent company anticipates returning to profitability this year after facing challenges in 2024 due to a major charge in its aviation sector. Furthermore, Capital A is also consolidating operations by transitioning the budget carrier to the long-haul brand AirAsia X Bhd, aiming to unify the AirAsia identity.