KUALA LUMPUR (Jan 23): AirAsia X Bhd (KL:AAX) could double its stock price in the next 12 months now that its restructuring is completed and industry tailwinds are blowing, said an analyst.

The reborn airline is expected to be a major beneficiary of the Visit Malaysia 2026 campaign, according to Hong Leong Investment Bank, which initiated a ‘buy’ call on the stock. Yields have also stabilised in recent quarters amid sustained demand and capacity constraints, the research house noted.

“We expect the enlarged group to benefit meaningfully from the campaign, given that a substantial portion of its aviation network is connected to Malaysian destinations,” Hong Leong Investment said.

Both AirAsia X and Capital A Bhd (KL:CAPITALA) have completed their restructuring, which stretched to the Covid-19 pandemic. The new AirAsia X, to be renamed AirAsia Aviation Group, will operate 250 aircraft plying short- and medium-haul routes connecting Asia, Australia, and the Middle East.

Shares of AirAsia X started 2026 on a weak footing after falling nearly 10% last year. Hong Leong Investment, however, has a target price of RM3.35, a potential capital upside of over 100% from Thursday’s close of RM1.66.

The target price is also the highest among three research houses covering the stock.

Further, AirAsia X stands to benefit from easing jet fuel prices that accounts for 30%-40% of its total costs, Hong Leong Investment said. A strengthening ringgit would also help, the research house said, noting that 60%-70% of total costs are denominated in the US dollar.

A US$1 (RM4.01) movement in jet fuel prices would have an impact of about RM80 million on profits, while a 10 sen change in the ringgit against the US dollar could affect earnings by around RM280 million, according to the research house’s analysis.

All in all, AirAsia X could make a net profit of about RM1.5 billion annually over 2026 and 2027, Hong Leong Investment’s forecasts show.