AirAsia X has lowered fares by 5% since June 15, with the Malaysian budget carrier adjusting ticket pricing on a weekly basis as jet fuel prices ease and additional capacity is restored, chief executive Bo Lingam said on Monday.
Lingam said recent de-escalation in Middle East tensions, following an initial U.S.–Iran peace agreement, had helped ease pressure on the aviation sector by pushing fuel prices down from their March peaks.
He noted that the industry had been significantly affected by higher fuel costs but expressed optimism that stability in the region would support recovery. He also pointed to a recent rise in bookings over the weekend.
Singapore jet fuel was trading at about $112 per barrel on Friday, down from a March 30 peak of $242, though still above pre-conflict levels of around $80 per barrel.
According to Lingam, AirAsia X will continue adjusting fares in line with fuel price movements. “Week by week, as fuel prices go down, we will also be revising our fares,” he said.
The airline had previously been hit hard by rising fuel costs, reporting a first-quarter loss after reducing flight frequencies by around 10% and increasing fuel surcharges to offset expenses. Analysts note that budget carriers are particularly vulnerable to fuel price volatility due to their price-sensitive customer base.
Lingam added that some routes were suspended entirely as they became financially unviable even at full capacity. Over the past three months, the airline has focused on trimming underperforming services, shifting demand, and renegotiating contracts with vendors and lessors, a process that is still ongoing.
AirAsia X expects its overall capacity to be fully restored by August, although unprofitable routes without sufficient demand will remain suspended.
The airline is also streamlining its fleet, returning around 12 older aircraft aged 16 to 17 years this year as newer, more fuel-efficient jets enter service.
Looking ahead, AirAsia X is set to receive seven Airbus A321LR aircraft next year, which will be deployed on medium-haul routes including China. It also expects its first Airbus A220 aircraft by the end of 2027, which are planned for operations in the Philippines.
Last month, the carrier placed a firm order for 150 Airbus A220 jets built in Canada, along with options for an additional 150 larger variants if Airbus develops them.
Source: ZAWYA