Southeast Asian budget airlines struggle with fuel costs
Southeast Asian budget carriers face a difficult second half of the year as soaring fuel costs and weak margins squeeze profitability. AirAsia and Cebu Pacific reported net losses while Scoot saw wider operating losses despite higher fares.
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Southeast Asia's budget carriers are grappling with soaring jet fuel costs and currency depreciation, cutting capacity to protect margins in the second half of the year. The regional low-cost sector faces a squeeze as price-sensitive passengers limit fare increases. Strained household budgets across Malaysia, Singapore, Thailand, Indonesia, and the Philippines threaten forward demand.
