TEMPO.CO, Jakarta - Malaysian low-cost carrier AirAsia X is taking a series of measures to cope with rising jet fuel prices triggered by the escalating conflict in the Middle East, including fare adjustments and route optimization.
AirAsia X Group CEO Bo Lingam said global jet fuel prices have more than doubled compared to 2025 amid geopolitical pressures and ongoing supply chain disruptions.
“To sustain operations, we are adjusting fares in a measured manner, including implementing a one-time fuel surcharge across our network,” Bo Lingam said during a virtual press conference on Monday, April 6, 2026.
He said the airline is also optimizing its network by redirecting capacity to stronger-performing routes and maximizing Fly-Thru connectivity through Kuala Lumpur and Bangkok to capture demand more efficiently.
“At the same time, we are actively negotiating with strategic partners to control costs,” he said.
As more aircraft are gradually reactivated, AirAsia X expects unit costs to improve. Bo Lingam added that stronger ASEAN currencies could also serve as a natural hedge against U.S. dollar-denominated costs.
Despite mounting geopolitical uncertainty, he said demand for travel to ASEAN destinations remains strong.
“We are operating in an increasingly challenging environment, but demand for travel to ASEAN destinations remains strong. This demonstrates the resilience of our network and the continued appeal of regional travel,” he said.
Bo Lingam said the trend further reinforces Kuala Lumpur’s role as the airline’s main hub and strengthens its position as a low-cost megahub connecting passengers seamlessly and affordably.
Despite the escalating conflict involving Iran, the United States, and Israel, AirAsia X said it will continue developing Bahrain as a strategic hub linking Asia, the Middle East, and Europe. The route is scheduled to begin operations on June 26, 2026, with the airline expressing hope that regional conditions will improve.
Meanwhile, AirAsia Non-Executive Chairman Tan Sri Jamaludin Ibrahim said the group is proactively redirecting capacity to routes with stronger performance and yields, including Almaty, Tashkent, and Istanbul, to capture shifting demand.
“At the same time, the development of the domestic hub in Senai, Johor Bahru, continues to be explored as part of our medium-term strategy,” Jamaludin said.
Jamaludin said the airline is entering the current period of global uncertainty from a position of strength, supported by solid fundamentals, efficient cost structures, disciplined operations, a resilient ASEAN-based network, and Fly-Thru connectivity that allows for quick responses to market changes.
“The challenges we face today are not limited to airlines but affect the entire aviation ecosystem, making collaboration with partners essential to maintaining industry competitiveness,” he said.
He added that AirAsia is also continuing to explore expansion opportunities, including additional aircraft orders and lease options, to support growth and network expansion.
Read: Indonesian Govt Keeps Domestic Airfare Hikes at 9-13%
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