Southeast Asia’s low-cost airlines are expecting some relief from the fuel shock triggered by the Middle East conflict but continue to face a difficult second half of 2026 as high costs squeeze margins and household financial pressures weigh on travel demand.

Recent quarterly results from Malaysia’s AirAsia, Singapore Airlines’ low-cost subsidiary Scoot and the Philippines’ Cebu Pacific highlighted the challenge. Efforts to offset higher fuel expenses through increased fares were insufficient, with AirAsia and Cebu Pacific reporting net losses and Scoot’s operating loss nearly doubling from a year earlier.

The results underline a key vulnerability in the low-cost airline model. Fuel represents a larger portion of expenses for budget carriers than for many full-service airlines, while their price-sensitive customers limit how much fares can be increased without risking weaker demand.

Currency movements have added to the strain. The Malaysian ringgit, Thai baht, Indonesian rupiah and Philippine peso all weakened against the US dollar, raising the cost of fuel and aircraft leases, which are generally denominated in dollars.

“The second quarter was the most challenging operating environment Cebu Pacific has faced post-pandemic,” CEO Mike Szucs said during an earnings call this month.

Cebu Pacific’s fuel costs more than doubled from a year earlier, another company executive said, with the impact intensified by an 8% depreciation in the peso. The airline has hedged about 30% of its third-quarter fuel requirements at less than $120 per barrel to provide some protection against further price volatility.

Full-service carriers have been in a stronger position because of continued demand from premium travellers following the pandemic, according to Nathan Gee, head of Asia-Pacific transportation research at BofA Global Research. Budget airlines have benefited less from that trend because of their simpler service offerings and smaller loyalty programmes, he said.

AirAsia is preparing for a challenging third quarter, traditionally the weakest period for regional travel. The airline plans to reduce seat capacity by 20% to 25% year on year, return 25 older aircraft to lessors during 2026 and suspend its Sydney-Kuala Lumpur service from October as part of a wider network adjustment.

CEO Bo Lingam said AirAsia was taking a “deliberate, tactical approach” to protect profitability after average jet fuel prices reached $183 per barrel in the second quarter. The airline also recorded a net foreign exchange loss of approximately $82 million.

Lingam said AirAsia expects to restore capacity to pre-war levels during the fourth quarter, with forward bookings broadly tracking last year’s levels.

Scoot, meanwhile, has continued expanding capacity as passenger demand remains strong. However, its passenger unit costs increased 21.7% in the three months to June. As a result, the airline’s operating loss widened to S$32 million ($25.2 million), from S$17 million a year earlier, despite higher fares and fuel-hedging protection through parent company Singapore Airlines.

The higher costs pushed Scoot’s break-even load factor to 100%. That means the carrier would have needed every seat occupied to cover passenger operating expenses, compared with an actual load factor of 90.6%.

Scoot Chief Commercial Officer Calvin Chan said the airline’s fare increases had not fully compensated for higher fuel prices, while continued conflict in the Middle East was adding uncertainty to the outlook.

Lower fuel prices could provide immediate relief to airlines, but they could also encourage carriers to restore capacity and compete more aggressively on fares, Gee said.

He added that intra-Asian routes could face particular pressure because supplies of narrowbody aircraft are recovering faster than those of widebody aircraft. Additional capacity could therefore emerge at a time when passenger demand is weakening.

Independent aviation analyst Brendan Sobie also warned that tighter household budgets could reduce travel among Southeast Asia’s middle class during the remainder of the year, including the crucial peak travel season.

“The short-term outlook is rather bleak,” Sobie said, adding that although there is potential for improvement in the fourth quarter, it remains too early to assess the strength or timing of any recovery.

Source: QCAA

King Abdulaziz International Airport has received two international accreditations from Airports Council International (ACI) World, strengthening its recognition for passenger experience, public health and operational readiness.

The airport was awarded the Level 4 Airport Customer Experience (CX) Accreditation and Public Health and Safety Readiness (PHSR) Accreditation during an event in Istanbul, Türkiye.

The Level 4 CX Accreditation places King Abdulaziz International Airport among the top 12 airports worldwide to achieve the distinction under ACI World’s Airport Customer Experience Accreditation programme. Jeddah Airports (JEDCO) CEO Mazen Johar received the accreditation on behalf of the airport.

The assessment covered eight areas, including customer understanding, strategy, measurement, operational improvement, governance, airport culture, service design and innovation, and collaboration across the airport community.

The PHSR Accreditation recognizes the airport’s preparedness in public health and safety and its compliance with internationally recognized standards.

JEDCO said the two accreditations reflect its continued efforts to improve passenger services, strengthen customer experience and adopt global best practices. The initiatives also aim to enhance coordination among the different organizations operating at the airport, supporting a smoother and more innovative passenger journey.

Source: SPA

Travellers from seven countries outside Saudi Arabia’s standard tourist e-visa system can now arrange travel packages and apply for entry permits through Webook.com, the digital ticketing and booking platform announced.

The new service is available to citizens of India, Egypt, Jordan, Pakistan, Bangladesh, Indonesia and Mexico. Licensed by Saudi Arabia’s Ministry of Tourism, Webook.com combines return flights, hotel accommodation, health insurance and a Saudi package visa into a single online booking.

The service operates under a pilot programme launched by the ministry in July in partnership with the Saudi Tourism Authority. Webook.com submits applications directly to government authorities for verification, with electronic visas typically issued within 24 hours and sent by email and through the platform’s mobile application.

Previously, travellers from the seven countries generally had to apply through a Saudi embassy or third-party agencies. The new system allows applicants to select their travel arrangements online, provide the required information and wait for electronic approval.

Eligible packages must include a confirmed return flight and accommodation at a four-star or higher hotel licensed by the Ministry of Tourism. The booking must have a minimum value of SR4,000 ($1,067), in addition to a combined visa and health insurance charge of SR402.21 ($107).

The package visa permits stays ranging from two to 90 days. A single application can cover up to nine adults and five minors. All bookings must be completed at least 48 hours before departure, while visa approval remains subject to the relevant government authorities.

“Saudi Arabia is building an events calendar the whole world is meant to attend,” said Nadeem Bakhsh, co-founder and CEO of Webook.com. “Selling tickets to that calendar was step one. Being licensed to get international fans through the airport is step two.”

Webook.com sells tickets for major Saudi events, including Roshn Saudi League matches and Riyadh Season. The platform has attracted more than 18 million users across 180 countries and processed over 25 million bookings during the past year.

More nationalities are expected to become eligible for the package visa as the programme expands.

Source: Arab News

An underground dam located about 54 kilometres south of Turabah Governorate is emerging as a peaceful destination for visitors drawn to nature and outdoor activities.

Situated along Wadi Turabah, one of the governorate’s prominent valleys, the site features a distinctive landscape shaped over time by seasonal floods and rugged terrain. Slopes, riverbanks, rock formations, water and native vegetation combine to create a scenic natural environment.

The area has also become a refuge for birds and local wildlife. Water retained around the dam supports native plant growth, adding to the site’s environmental significance alongside its recreational appeal.

During weekends, residents and visitors head to the area to enjoy activities including walking, relaxing beside the valley, exploring the surrounding landscape and photographing the scenery.

Tour guide Adel Al-Baqmi told the Saudi Press Agency that the dam has attracted both residents and visitors because of its tranquil atmosphere and natural beauty.

With its combination of biodiversity, distinctive terrain and opportunities for relaxation, birdwatching and photography, the underground dam is developing into an important eco-tourism attraction in Turabah, offering visitors an opportunity to experience the area’s natural landscapes away from urban life.

Source: SPA

Saudi Entertainment Ventures (SEVEN), a wholly owned subsidiary of Qiddiya Investment Company (QIC), has announced the opening of SEVEN Tabuk, expanding its entertainment network and supporting the Kingdom’s quality-of-life and regional development goals under Saudi Vision 2030.

SEVEN Chairman Abdullah Al Dawood said the opening represents another step in the company’s strategy to develop accessible entertainment destinations that are closely connected to the communities they serve.

SEVEN Tabuk is the company’s second entertainment destination, following SEVEN Abha, as SEVEN continues its plans to establish destinations across Saudi Arabia.

Located within Tabuk city, the fully indoor, all-weather destination is designed for everyday entertainment, offering residents and visitors a wide range of activities without requiring long-distance travel.

The destination operates from 4:00 p.m. to 1:00 a.m. on weekends and from 4:00 p.m. to midnight on weekdays, while Scene Cinemas operates daily from 4:00 p.m. until 3:30 a.m.

SEVEN Tabuk combines international attractions with locally developed concepts. Key offerings include Discovery Adventures, featuring immersive exploration-themed environments, and Hot Wheels E-Karting, an interactive karting experience inspired by the global brand.

The destination also features SEVEN’s homegrown concepts, including Kawaken, Kawaken Junior, GolFi, Cyber Bowling and Scene Cinemas, providing entertainment options for families, young people and a broad range of visitors.

Beyond entertainment, SEVEN Tabuk is expected to contribute to the city’s wider development by supporting local employment and strengthening partnerships with local businesses.

The opening further reinforces Tabuk’s position as an emerging leisure destination in northern Saudi Arabia while expanding access to entertainment experiences across the Kingdom.

Source: SPA