AirAsia X announced Monday it will raise fares and reduce flight capacity amid surging oil prices caused by Middle East conflict. The budget carrier increased fuel surcharges by 20 percent while raising fare prices between 31 and 40 percent.
Jet fuel prices have reached up to $300 per barrel in some markets, severely impacting the airline. AirAsia X recently completed its takeover of short-haul aviation business from parent Capital A in January.
Company co-founder and Capital A CEO Tony Fernandes said demand remains high despite the challenges. The airline continues planning for its Bahrain hub launch in June, though conflicts in the region create uncertainty.
AirAsia X intends to resume Kuala Lumpur to London flights via Bahrain starting June 26, marking its first service outside Asia. However, recent U.S. and Israeli airstrikes on Iran have disrupted Middle East aviation, forcing route cancellations across the industry.