AirAsia X Increases Prices and Cancels Flights Due to Fuel Shortage Amid Middle East Conflict
AirAsia X, a budget airline, is responding to a jet fuel shortage caused by the ongoing conflict in the Middle East by increasing airfares and canceling flights. The Malaysian carrier has raised prices by up to 40% and fuel surcharges by 20%. The airline's CEO, Bo Lingam, stated that the average cost of jet fuel has surged to about $200 per barrel, significantly impacting their operations. As a result, about 10% of flights after the Eid al-Fitr holidays have been cut, and the airline is scaling back on unprofitable routes. Despite these challenges, AirAsia X plans to expand into the Middle East, launching a new hub in Bahrain and a route connecting Kuala Lumpur, Bahrain, and London.