AirAsia will not cancel flights, says Tony Fernandes, as strong travel demand offsets rising fuel costs driven by the West Asia conflict

KUALA LUMPUR, March 30 — Capital A chief executive officer Tan Sri Tony Fernandes said AirAsia may introduce slight fare increases following the conflict in West Asia, but prices will remain affordable.

He stressed that the airline will not cancel flights despite rising crude oil prices, citing strong travel demand.

“We won’t be cancelling flights as demand remains strong. We are doing everything we can to keep fares low, but we will need support from other players in the aviation ecosystem,” he said at a press conference today.

Fernandes noted that higher fuel costs will inevitably lead to fare adjustments, though AirAsia aims to keep increases lower than its competitors.

“Fares will have to go up, there’s no avoiding it, but our increases will be much smaller compared to others,” he added.

Despite mounting cost pressures, he said the airline is still able to operate and absorb part of the impact, supported by reduced flight capacity from Gulf carriers such as Emirates, Etihad Airways, and Qatar Airways, which has declined by around 15 to 20 per cent.

According to Fernandes, this reduction presents an opportunity for Asean countries to position themselves as alternative aviation hubs in the region.

However, he emphasised that rising costs should not be shouldered by airlines alone, calling for a collective effort across the industry.

“The burden cannot fall solely on airlines. Fuel suppliers, airports, and the wider supply chain must also play their roles.

“This is a great opportunity to build stronger hubs and enhance the ecosystem. What’s encouraging is that airlines are working together, which is fantastic,” he said.

Fernandes also pointed out that the aviation sector has endured even tougher challenges during the Covid-19 pandemic, expressing confidence that the company can navigate the current situation through innovation and strategic measures. — Bernama