The major low-cost airline "AirAsia X" has adjusted its strategy to face the US-Israel and Iran war by raising ticket prices and cutting about 10% of its flights to manage the impact of the Middle East conflict, which has driven up oil costs after global oil prices surged due to the closure of the Strait of Hormuz. However, it still plans to open a new hub in "Bahrain" this June.
AirAsia X, a leading low-cost carrier in Southeast Asia, announced fare increases and flight reductions to mitigate the impact of rising costs caused by the Iran war affecting global oil supply.
Tony Fernandes, founder of AirAsia X, stated that the airfare increase is "unavoidable" and revealed that the company has decided to cut flights by about 10%, particularly on routes unable to bear the higher oil cost burden.
Since clashes began between the US-Israel alliance and Iran in late February, leading to the closure of the Strait of Hormuz, airlines worldwide have been affected by energy prices and have had to raise fuel surcharges continuously.
Amanda Woo, Chief Commercial Officer of AirAsia X, explained that the company is diversifying operations to more than 150 destinations across 25 countries that can still profitably cover fuel surcharges. Additionally, they have measures to reduce passenger burdens in other areas, such as lowering checked baggage fees to encourage travelers.
Despite facing a crisis following recovery from the COVID-19 situation, during which the company made a profit of 1.96 billion ringgit last year, the airline confirms that plans to open a new aviation hub in the Middle East at "Bahrain" and to expand its route network beyond ASEAN remain on schedule for June.
Jamaludin Ibrahim, Independent Chairman of AirAsia X, concluded, "After overcoming difficult lessons and preparing to fully take off in 2025, we now face a new crisis that directly challenges costs and profits. However, we remain confident that the situation in 2026 will be manageable, provided the crisis does not prolong excessively."
.AFP