AirAsia offsets 70 per cent increase in avtur prices through ticket fares
Fuel price pressure remains one of the primary challenges facing the global aviation industry, alongside geopolitical uncertainty.
AirAsia has stated that it has offset approximately 7/0 per cent of the increase in avtur (aviation fuel) prices during the second quarter of 2026 through dynamic adjustments to airfares and the control of non-fuel operational costs.
AirAsia Group CEO Bo Lingam, in a press release received in Jakarta on Friday, noted that fuel price pressure, alongside geopolitical uncertainties—including the roles of Iran and the United States—and rising operational costs, are significant challenges for the global aviation sector.
According to Bo, AirAsia is also adjusting flight capacity as part of its efforts to maintain operational efficiency amidst current market conditions.
AirAsia tactically reduced capacity by 20-25 per cent in the third quarter of 2026, which is traditionally a lower travel period in the region.
Heading into the fourth quarter, AirAsia is preparing to increase capacity back to levels seen before the Iran-US tensions, aligning with the year-end peak travel period in Asia.
Regarding its fleet, AirAsia has returned 25 older, less fuel-efficient aircraft as part of its long-term fleet optimisation programme.
Bo stated that this move helps reduce fixed lease burdens while accelerating the transition towards more efficient narrowbody aircraft.
“With short-haul and long-haul flight operations now within a single group, AirAsia has greater flexibility to optimise fleet usage and capacity across the network, with a stronger focus on route profitability and sustainable returns,” he said.
AirAsia also stated that the company’s fundraising plans are primarily directed towards debt restructuring, refinancing, and balance sheet consolidation to optimise long-term capital structure, rather than solely to fund operational requirements.
During a media briefing on Friday, AirAsia co-founder Tony Fernandes acknowledged that the rise in avtur costs is affecting the airline’s operational expenses. He noted that the second quarter was a difficult period as average avtur prices reached 183 US dollars per barrel, representing a 66 per cent increase compared to the previous quarter.
However, he suggested that conditions are expected to improve as AirAsia adjusts fares to anticipate rising fuel costs.
Despite the pressure on operational costs, Fernandes confirmed that no AirAsia aircraft have been grounded due to defaults.
Currently, AirAsia operates approximately 250 aircraft, with an additional 10 aircraft expected to be ready for operation by October.