AirAsia X Raises Fares, Cuts Flights on Fuel Cost Surge

Southeast Asia's largest low-cost carrier, AirAsia X, announced on Monday that it would raise ticket prices and reduce flight capacity to offset surging fuel costs triggered by the ongoing war in the Middle East, while Indonesia's government introduced measures to allow airlines there to increase surcharges and limit passenger impacts.

The Malaysia-based airline, which operates flights to more than 150 destinations across 25 countries, stated that it had already cut about 10 percent of its overall flights, focusing reductions on routes where fuel expenses could not be covered. Ticket prices have risen between 31 and 40 percent, with fuel surcharges increasing by around 20 percent. AirAsia X founder Tony Fernandes described the higher prices as "unavoidable," adding that the carrier would trim capacity on underperforming routes. Chief commercial officer Amanda Woo noted that the airline was shifting operations to more viable paths to recover surcharges and had lowered baggage fees to moderate overall fare hikes.

Despite the adjustments, AirAsia X emphasized that demand for its services remained strong. The carrier plans to proceed with launching flights to Bahrain in June as its...