Avtur Price Surge Prompts AirAsia to Adjust Fares and Redirect Routes
Low-cost carrier AirAsia X (Malaysia) is taking several measures to address the rise in avtur prices resulting from the war in the Middle East region. These steps range from fare adjustments to route redirections.
CEO of AirAsia X Group Bo Lingam stated that amid geopolitical pressures and supply chain disruptions, global avtur prices have surged more than twofold compared to 2025. “To maintain operational sustainability, we are implementing measured fare adjustments, including a one-time fuel surcharge across the entire network,” said Bo Lingam during a press conference via Zoom on Monday afternoon, 6 April 2026.
He added that the airline is also continuously optimising its network by redirecting capacity to stronger routes, as well as maximising Fly-Thru connectivity through Kuala Lumpur and Bangkok to capture demand more efficiently. “On the other hand, we are actively negotiating with strategic partners to control costs,” he said.
Alongside the gradual reactivation of the fleet, Bo Lingam noted, unit costs will improve further, supplemented by the strengthening of ASEAN currencies as a natural hedge against US dollar-based costs.
Bo Lingam said that AirAsia is currently operating in an increasingly challenging environment, yet demand for travel to ASEAN destinations remains strong. “This demonstrates the resilience of our network as well as the high interest in regional travel.”
According to him, this further affirms Kuala Lumpur’s role as a primary hub and strengthens its position as a global LCC megahub that seamlessly and affordably connects passengers.
Amid the escalating situation in the Middle East due to the Iran-United States and Israel war, AirAsia X will still develop Bahrain as a strategic hub connecting Asia, the Middle East, and Europe. This route is scheduled to commence operations on 26 June 2026, with hopes that regional conditions will become more conducive.
Non-Executive Chairman of AirAsia Tan Sri Jamaludin Ibrahim stated that the group is proactively redirecting capacity to routes with stronger performance and yields, such as Almaty, Tashkent, and Istanbul, to capture disrupted demand. “At the same time, the development of a domestic hub in Senai, Johor Bahru, is also being explored as part of the medium-term strategy,” said Jamaludin.
Amid global uncertainties, Jamaludin said, the airline is entering a phase from a position of strength. This, he noted, is due to the group’s solid fundamentals, supported by an efficient and disciplined cost structure, a resilient ASEAN-based network, and Fly-Thru connectivity that enables quick responses to market dynamics.
“Looking ahead, we will ensure operational agility and strong governance, while continuing to build on the established business foundations,” he stated.
According to him, the current challenges are not only faced by airlines but by the entire aviation ecosystem, making collaboration with partners key to strengthening industry competitiveness. “We are also continuing to explore expansion opportunities, including additional aircraft orders and leasing options to support growth plans and network expansion to more destinations,” said Jamaludin.