AirAsia needs $1 billion by January as fuel prices bite

AirAsia expects to raise $1 billion in financing by January, the airline said, as rising fuel costs put pressure on its budget. The Malaysian carrier is seeking the funds to strengthen its finances and keep its expansion plans on track. Fuel is one of the largest costs for any airline. When fuel prices rise, profit margins shrink — especially for budget carriers that sell cheap tickets. AirAsia did not say exactly how it will raise the money. Options typically include loans, bonds, or selling shares to investors. The company has not commented on whether the financing is urgent or whether its operations are at risk.