AirAsia Shares Plunge 21% on Report Malaysia Is Considering Rival Entrants

AirAsia Group shares fell as much as 21%, their biggest single-day drop since March 9, after a media report said Malaysia had contacted other local airlines to potentially take over the low-cost carrier's domestic market share. According to Sina Finance, citing two people familiar with the matter, Malaysian authorities are monitoring AirAsia's financial condition, and talks with Malaysia Airlines and Batik Air are part of contingency planning. The stock fell to its lowest level since 2022. Capital A Ltd. shares, its parent company, dropped as much as 18% to a more than one-year low.