AirAsia may lower its ticket prices further if fuel costs continue to ease, as tensions in the Middle East begin to calm down. Group CEO Bo Lingam said the airline has already started passing on some savings to customers, with fares reduced by 5% on June 15.
The move appears to have paid off, as the budget carrier saw an increase in bookings over the weekend following the price adjustment.
AirAsia shares losses of more than RM150million
While fuel prices have weighed heavily on the airline’s finances, passenger demand has remained resilient.
According to Bo, the airline recorded a load factor of 83% between January and May, indicating that most seats on its flights were filled despite higher operating costs.
He also shared that the airline incurred losses of more than RM150 million in the first quarter of 2026, largely due to soaring fuel prices after conflict broke out in the Middle East on March 4.
Adjusted operations over the past three months
To manage costs and respond to changing travel patterns, the airline has restructured parts of its operations.
Some of the measures taken include:
- Adjusting flight frequencies based on demand
- Reviewing route profitability
- Optimising operations to improve cost efficiency
Bo said these changes have helped the airline navigate a challenging operating environment.
Bahrain & London flights set to launch in August
AirAsia is also continuing with its expansion plans.
The airline will launch flights to:
- Bahrain
- London
Both routes are scheduled to begin in August. Bo said the expansion will bring AirAsia closer to its goal of connecting one billion passengers across Southeast Asia by the end of 2027.
Why was the Jakarta-Singapore route cancelled?
On a related note, Bo also addressed AirAsia’s decision to discontinue its Jakarta-Singapore route. He explained that the route had become financially unsustainable, as the airport tax charged at Singapore Changi Airport was higher than the airfare itself.
As a result, the airline could no longer justify operating the route from a commercial standpoint.
AirAsia may revive another regional route
While the Jakarta-Singapore route has been scrapped, the airline is exploring the possibility of bringing back flights between Jakarta and Thailand.
However, Bo noted that rising airport taxes in Thailand remain a concern and could affect the route’s feasibility.
12 ageing aircraft to be retired
AirAsia is also in the process of modernising its fleet.
The airline plans to phase out 12 older aircraft due to:
- Higher fuel consumption
- Rising maintenance costs
- Lower operational efficiency
To replace them, AirAsia is acquiring new Airbus A321LR aircraft.
Fleet expansion plans:
- 2 aircraft arriving in 2026
- 7 more aircraft arriving in 2027
Bo said the newer aircraft will help improve fuel efficiency and support the airline’s future growth plans.
Could travellers see cheaper flights ahead?
With fuel prices showing signs of stabilising and AirAsia hinting at further fare reductions, travellers could see more affordable flight options in the months ahead.
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