HONG KONG – Malaysian budget carrier AirAsia X has lowered fares by 5 per cent since June 15 and the airline is reviewing the situation week by week as jet fuel prices drop, the company’s chief executive officer Bo Lingam said on June 22.
The airline used the past three months to cut underperforming flights, shift demand and renegotiate contracts with all vendors and lessors, Lingam said, as the US-Iran war wreaked havoc with travel worldwide.
“We went back and see how we can restructure and renegotiate all our contracts, which is still ongoing,” Lingam told reporters.
“Week by week, as fuel prices go down, we will also be revising our fares,” he added.
AirAsia X has been hard hit by volatile jet fuel prices, posting a first-quarter loss in 2026 as it cut 10 per cent of flights and added fuel surcharges to deal with rising costs.
The airline said in a statement on June 22 it expected its capacity to be fully restored by August.
Singapore jet fuel traded at about US$112 a barrel on June 19 after recent declines due to an interim US-Iran peace deal. That was higher than the pre-conflict price of around US$80 a barrel but less than half of the March 30 high of US$242.
Lingam also said the airline expected to receive its first Airbus A220 jets by the end of 2027, which would be deployed in the Philippines. REUTERS
