KUALA LUMPUR – Malaysia introduced measures to ensure the operational stability of its aviation industry and ease the financial strain on airlines as they struggle with the impact of war in the Middle East.
Authorities have offered an extension of up to 60 days for the payment of navigation fees and charges, exemptions on aircraft parking fees, and a two-month deferment of passenger boarding bridge and check-in counter costs, the Ministry of Transport said on its Facebook page.
The government also allocated RM5 million (S$1.6 million) for flight ticket rebates that are set to benefit 100,000 Malaysians traveling between Peninsular Malaysia and Sabah, Sarawak and the federal territory of Labuan. The rebate programme is effective from May to June.
A surge in jet fuel prices from US$85-US$90 to US$150-US$200 per barrel from the Iran war has blindsided the aviation industry, where fuel accounts for up to a quarter of operating expenses, forcing airlines to raise fares and revise financial outlooks.
AirAsia X last week reported a net loss of RM154.9 million in the first quarter of 2026 due to elevated jet fuel prices in late March.
Singapore Airlines warned last week that higher fuel costs have yet to fully feed through its operations, and expects the full effect to be reflected only in its next set of financial results. BLOOMBERG
