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AirAsia X to raise fares, cut capacity over Middle East war
Bo Lingam said average jet fuel costs have jumped to about $200 a barrel, forcing the carrier to trim unprofitable routes.
- On Monday, AirAsia announced it is raising ticket prices by as much as 40% and cutting about 10% of its flights to offset soaring fuel costs following the Iran conflict.
- Average jet fuel costs have soared to about $200 per barrel from around $90 previously, as conflict involving Iran triggered energy spikes, leaving the Malaysia-based carrier vulnerable due to its lack of fuel hedging.
- Founder Tony Fernandes said higher prices were "unavoidable," and capacity would be cut on routes "where we don't believe we can cover the cost of the fuel," with fares increasing between 31 per cent and 40 per cent.
- The carrier is adjusting aircraft deployment and bringing forward maintenance checks to manage costs, while planned services to Bahrain remain set to launch in June, according to officials at headquarters in Selangor.
- Prime Minister Anwar Ibrahim signaled on Sunday that Malaysia may face fuel supply uncertainty as early as June; despite these pressures, the airline aims to build on its 1.96 billion ringgit profit from 2025.
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The Manila TimesReposted by 
The Peninsula Qatar
The Peninsula QatarAirAsia X to raise fares, cut capacity over Mideast war
KUALA LUMPUR — Southeast Asia's largest low-cost carrier AirAsia X said Monday it was raising ticket prices by up to 40 percent and cutting routes to cushion the impact of the war on Iran, but stressed demand for flights remained high.
·Manila, Philippines (the)
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Airasia X Announces Fare Increases and Flight Reductions to Cope with the Crisis in the Middle East.
AirAsia X announced price increases and reductions in some flight routes due to soaring fuel costs from the Iran-Iran conflict, but affirmed that travel demand remains strong.
Coverage Details
Total News Sources16
Leaning Left1Leaning Right5Center3Last UpdatedBias Distribution56% Right
Bias Distribution
- 56% of the sources lean Right
56% Right
11%
C 33%
R 56%
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