AirAsia CEO Frankly States Latest Situation on Jet Fuel and Fuel Surcharge in Indonesia
Jakarta, CNBC Indonesia - AirAsia Indonesia has confirmed that flight operations remain stable despite increasing global pressures. The escalation of conflict in the Middle East has driven up world oil prices, which in turn has led to a surge in jet fuel prices, exacerbated by the weakening exchange rate of the rupiah.
This situation has caused a significant increase in the airline’s operational costs. Nevertheless, management has emphasised that various efficiency measures have been implemented to maintain business balance while preserving affordable ticket prices for the public.
Acting CEO of Indonesia AirAsia, Achmad Sadikin, emphasised that the company is taking measured steps to address this situation.
“We continue to implement various efficiency measures in a disciplined and measured manner to maintain the balance between operational sustainability and affordability of services for the public. Safety remains the top priority, and every adjustment is made carefully, taking into account market conditions and applicable regulations,” he told CNBC Indonesia on Thursday (26/3/2026).
Amid cost pressures, the availability of jet fuel is still secure, so flight operations have not been disrupted. The airline is also continuously monitoring fuel price developments and adhering to mechanisms set by regulators and energy providers.
Efficiency efforts are being carried out by optimising various operational aspects, from capacity management to improving fuel consumption efficiency. Additionally, flight frequency adjustments on several routes are being made based on market demand levels.
From the demand side, the company has not yet observed any significant decline in passenger numbers that can be directly linked to global geopolitical dynamics, including the Middle East conflict.
Furthermore, regarding discussions on adjusting fuel surcharges and upper fare limits, AirAsia Indonesia stated that it aligns with the industry’s stance. Airlines affiliated with INACA support proportional fare adjustment flexibility.
“Regarding the proposal to adjust fuel surcharges and upper fare limits (TBA) by INACA (National Airlines Association), Indonesia AirAsia, as part of the association, supports proportional adjustment flexibility to maintain industry sustainability, while still considering public purchasing power and regulatory guidance,” Sadikin said.
The airlines’ association, INACA, assesses that the current conditions no longer align with the applicable cost structure, thus requiring fare adjustments to ensure operational sustainability.
Global oil prices have also surged dramatically, directly impacting domestic jet fuel prices that continue to rise.
“Global oil prices have risen from USD 70 per gallon to USD 110 per gallon, or an increase of 57%, while jet fuel prices in Indonesia are now in the range of Rp14,000 to Rp15,500 per litre,” INACA stated.
An official request has been submitted to the government to adjust cost components in the aviation industry.
“Raising the fuel surcharge by 15% and increasing the Upper Fare Limit (TBA) by 15% for both jet and propeller aircraft is the measure we propose,” it added.