AirAsia X Plans to Increase Airfare Prices and Reduce Routes

AirAsia X has announced plans to increase airfare prices and reduce flight capacity in the near future. This step is being taken to address the impact of the US and Israel conflict against Iran. Nevertheless, the Malaysian airline emphasised that flight demand remains sufficiently high, as reported by AFP on Monday (6/4/2026). “Overall in the group, we are only cutting around 10 per cent of flights, which is also in line with the quieter travel season after Hari Raya,” said Bo, quoted from Sinar Daily. Meanwhile, AirAsia X founder Tony Fernandes stated that the ticket price increase is something that “cannot be avoided”. This decision is being made to ensure the company’s business sustainability. In addition to the price hikes, flight capacity on certain routes will also be reduced. “We are reducing routes where we feel we cannot cover the fuel costs,” said Fernandes. With this large network, they can expand operations to more profitable routes. They are selecting routes where the additional fuel costs can be well covered. Not only that, the airline is also trying to curb the surge in ticket prices by reducing baggage fees. This step is hoped to somewhat alleviate the burden of travel costs. Although there are schedule reductions, AirAsia X’s major plans are not entirely cancelled. One of them is the launch of services to Bahrain in June 2026. That country is projected to become their first hub in the Middle East. “We still see high demand for routes to Bahrain, and the plan to operate that route remains on track,” said Bo. Plans to expand the network beyond Southeast Asia will also continue to be processed. AirAsia X’s Independent Non-Executive Chairman Jamaludin Ibrahim stated that 2025 was a profitable year. However, he regrets the emergence of a new crisis just as the company wants to “take off” higher. “This is a real challenge that directly impacts our costs, margins, and network decisions,” said Ibrahim.