KUALA LUMPUR: AirAsia X Bhd
expects to gradually lower airfares following the recent decline in jet fuel prices, while restoring capacity that had been reduced during the surge in fuel prices caused by the conflict in West Asia.
Group chief executive officer Bo Lingam said the airline had already reduced fares by 5% on June 15 and would continue reviewing ticket prices on a weekly basis in line with fuel price movements.
“Fuel prices have gone down, and the industry has been significantly impacted by the increase in fuel prices. So hopefully, everything in West Asia is getting better, and we can move on immediately after that.
“I can already see demand picking up over the weekend as well.
“I see a lot of people booking flights, and we have already brought down fares by 5% on June 15 and we are slowly reviewing fares week by week.
“As fuel prices go down, we’ll also be revising our fares,” he said during the AirAsia Aviation Outlook Briefing.
Despite high fuel prices and global disruptions, Bo said AirAsia maintained a strong 83% load factor from January to May this year.
He said the airline incurred a loss of RM150mil in March 2026 due to the sudden fuel price hike.
To improve profitability and operational resilience, Bo said AirAsia had spent the past three months reviewing its network, suspending underperforming routes and enhancing cost management measures.
He added that the airline had also accelerated maintenance activities and fleet optimisation efforts, including the gradual retirement of older aircraft with higher fuel consumption and maintenance costs.
“We are also sending back all the old aircraft, those that are 16 to 17 years old.
“There are about 12 aircraft this year; we are returning them.
“So, with the long range (LR) A321LR coming in, we are making sure that we streamline our routes and optimise our network because these older aircraft consume more fuel, making it pointless to keep them.
“Their maintenance costs are also higher,” he said.
Bo said AirAsia X would receive seven additional Airbus A321LR aircraft next year after taking delivery of two this year, enabling the airline to deploy more fuel-efficient aircraft on medium-and long-haul routes.
Meanwhile, Bo said AirAsia X expects to restore most of its reduced capacity by the end of August 2026.
“What we are doing now is bringing back flights that we had capacity-managed. As demand comes back, we will slowly restore capacity to its original level,” he said.
He added that the group remains committed to its growth plans, including routes to Bahrain and London, which are scheduled to commence in August 2026.
Meanwhile, Bo said AirAsia X is open to exploring flight services to Turkmenistan and Russia should market opportunities and operational requirements prove viable.
AirAsia X is closely monitoring opportunities arising from new government-to-government initiatives and bilateral arrangements that could support future route development.
“We are very open. The Prime Minister went to Russia and spoke about bilateral arrangements to fly there and so forth.
“We will definitely, if there is opportunity, and we have got the right aircraft to fly there.
“We hope, we (Malaysia) get more visa-free (facilities), which makes travelling seamless for everyone,” he said.
On whether Turkmenistan and Russia could be considered as future destinations, Bo said the airline would assess market demand and operational feasibility before making any decision.
“I won’t know when, but we are very open,” he said.
