AirAsia Group has signalled it expects a strong rebound in air travel across south-east Asia in the coming months as the budget carrier raises $233 million from a rights issue. The cash-strapped carrier is controlled by Malaysian tycoons Tony Fernandes and Kamarudin Meranun.

Supported by Fernandes, Kamarudin and other existing shareholders, the fund raising exercise will see the listing of seven-year redeemable convertible unsecured Islamic debt securities (RCUIDS) and warrants. “The rights issue is a key component of our overall fund-raising strategy supporting a strong rebound in air travel across ASEAN in 2022,” Tony Fernandes, AirAsia Group chief executive, said.

“We are gradually resuming flights in all of our key markets and look forward to returning to pre-Covid-19 levels on many of our popular routes in the new year alongside strong vaccination rates, better testing procedures and education in all of our markets.” The funding will provide strong liquidity for the airline to ramp up operations through next year.