KUALA LUMPUR: AirAsia is working hard to cut costs significantly, said Tan Sri Tony Fernandes.
The Capital A chief executive officer said that while the surge in petroleum prices cannot be controlled, it can be worked with.
“There are only two options. Either raise fares—which isn’t ideal—or cut costs,” he said during the “Faculty CEO Series” live podcast session at UCSI University on Friday (April 17).
He was responding to a student’s question on how low-cost airlines can maintain affordable ticket prices amid rising fuel costs driven by ongoing Middle East conflicts.
He added that ancillary services, such as hotel offerings, also help support the airline’s revenue streams.
Fernandes also explained that AirAsia is leveraging artificial intelligence (AI) to improve operational efficiency and reduce fuel consumption.
“I'm using Al to make our network more efficient, which will cut a lot of fuel,” he said, noting that the airline has already reduced fuel usage by about 3%.
While fares may inevitably rise, Fernandes said AirAsia will remain more affordable than full-service carriers.
“The gap will still remain, but we will lose some demand, for sure, because even though we are low-cost, our tickets may become too expensive for some,” he said.
During the live podcast session, he also advised students to turn crisis into something positive.
“There is always a solution. During Covid-19, we went and built five new businesses,” he said.
The event featured an engaging discussion on leadership, innovation and strategic growth, followed by an interactive Q&A session.
