Low-cost airline AirAsia X to raise fares, cut capacity over Mideast war

Southeast Asia’s largest low‑cost carrier AirAsia X says it’s increasing ticket prices and cutting routes to cushion the impact of the US-Israel war on Iran, but stresses that demand for flights remains high.

The Malaysia‑based no‑frills airline says about 10 percent of its overall flights have been cut so far.

However, it says its planned services to Bahrain, the airline’s first Middle East hub, and a move to expand its network beyond Southeast Asia, are still set to launch in June.

AirAsia X founder Tony Fernandes says higher prices are “unavoidable” and that capacity will be cut on routes “where we don’t believe we can cover the cost of the fuel.”

Many international airlines have hiked fuel surcharges since US-Israeli strikes on Iran triggered the conflict in late February, prompting Tehran to respond by effectively closing the Strait of Hormuz, a crucial artery for global oil supplies.

AirAsia X chief commercial officer Amanda Woo says the Malaysia‑based carrier, which flies to more than 150 destinations across 25 countries, was able to spread operations along routes “where we can recover the high fuel surcharges.”

The airline is also taking measures to try to rein in price hikes, including reducing baggage fees, Woo adds.