Asian Airlines Under Pressure from Energy Crisis, Flights Reduced

Asian airlines are beginning to cut flights. Airlines are also carrying additional fuel from the departure airport and adding refuelling stops. These steps are being taken as the Middle East conflict pressures jet fuel supplies.

The pressure has intensified after fuel prices surged sharply. Kpler data shows that European airlines are preparing for similar disruptions after Iran closed the Strait of Hormuz. This route carries nearly 21 per cent of the global jet fuel supply by sea.

Citing the Straits Times, jet fuel prices have more than doubled since the Iran war. This situation is prompting airlines to reduce flight capacity.

Batik Air Malaysia cut domestic capacity by up to 36 per cent on 6 April. CEO Chandran Rama Muthy described this as a response to the crisis.

“If we continue to operate without adjustments, this could increase the company’s operational and financial risks,” said Muthy.

Analysts assess that the biggest impacts are in Asia, Europe, and Africa. The United States is relatively safer due to its adequate domestic supplies.

This crisis is not only driving up prices. Physical supplies are also becoming limited. Governments, airlines, and airports are beginning to consider fuel distribution restrictions.

Endau Analytics founder Shukor Yusof views the war’s uncertainty as heightening airlines’ concerns.

“Airlines are very worried about the future situation, because we don’t know when the war will end and when the supply chain will return to normal,” said Yusof.

AirAsia X is now carrying extra fuel from Malaysia before flying to Vietnam.

“It’s not that they aren’t providing fuel, but the amounts are limited,” said AirAsia X CEO Bo Lingam.