AirAsia X to raise fares and cut flights as oil prices rise
The budget carrier will raise fares and cut flights to manage rising fuel costs. Co-founder Tony Fernandes says demand remains high despite the price changes.
The long-haul budget carrier AIRASIA X BHD has announced plans to increase passenger fares and reduce flight frequencies in specific markets. This strategic shift comes as the airline grapples with surging fuel expenses driven by ongoing geopolitical tensions and the resulting volatility in global oil prices. During a press conference on Monday, the airline's co-founder, Tony Fernandes, explained that the company must adjust its pricing and capacity in areas where it can no longer effectively cover the cost of fuel. Despite these adjustments, Fernandes noted that consumer demand for air travel remains robust across the carrier's network. > "Demand for flights remained high and the airline was still committed to a planned hub in Bahrain, with its first flight scheduled for June 26." The expansion into Bahrain remains a key component of the airline's growth strategy. AirAsia X intends to proceed with the launch of its new hub in the Middle Eastern nation, maintaining its original timeline despite the broader economic pressures facing the aviation industry.
