KUALA LUMPUR — AirAsia X is adjusting fares and capacity, and tightening costs to mitigate rising fuel prices, said its co-founder and advisor Tan Sri Tony Fernandes.
Fernandes, also the CEO of Capital A, said the low-cost carrier will trim capacity and revise fares upward, noting that such adjustments are necessary to sustain operations amid ongoing volatility caused by the US-Israel war with Iran.
Demand for air travel remains resilient, however, despite rising costs, Bernama reported him saying at a media briefing in Sepang today.
Fernandes said AirAsia is accelerating operational improvements and ecosystem integration to mitigate pressures, including strengthening its cargo segment, enhancing connectivity across its network, and leveraging digital platforms such as MOVE and AirAsia NEXT to drive demand, while also improving maintenance efficiency and on-time performance.
AirAsia’s cargo business continues to see robust demand, supported by its logistics arm Teleport, he added.
AirAsia X group CEO Bo Lingam, meanwhile, said the airline will continue to revise fares based on the current situation and fuel prices, adding that any increase will be implemented carefully to balance affordability and cost recovery.
To date, he said AirAsia X has reduced about 10 per cent of its flights, largely reflecting seasonal demand patterns following the Hari Raya peak period.
He added that AirAsia’s extensive domestic and Asean network allows the airline to spread capacity efficiently while maintaining competitive pricing across markets.
He said the airline is also strengthening its connectivity footprint, with cities such as Istanbul serving as key transit points linking Europe and Asia, while growing demand is being observed from markets including Central Asia.
Bo also assured that AirAsia X is not implementing job cuts or voluntary unpaid leave as an option to manage rising costs.
“There are no staff cuts and no voluntary unpaid leave at this point,” he told the media briefing.
On expansion plans, he reaffirmed the airlines’ commitment to launch flights to Bahrain in June, subject to geopolitical developments.
“We are still seeing strong demand for Bahrain, and the plan to operate the route remains on track,” he said.
He added that other routes, including Busan, are proceeding as scheduled.
AirAsia said it will continue to monitor market conditions closely and adjust capacity and fares accordingly, while maintaining connectivity across its key markets. – April 6, 2026