KUALA LUMPUR, Sept 18 — AirAsia Group Bhd currently anticipates jet-fuel prices of between US$160 and US$190 (RM652 and RM775) per barrel and may reprice airfares again should prices rise to US$250 per barrel, said co-founder and adviser Tan Sri Tony Fernandes.
“Right now, I’m anticipating oil to be between US$160 and US$190 per barrel, and we are stable. Of course, if it goes up to US$250 per barrel, then I have to do another repricing,” he said during a virtual media briefing on AirAsia’s business update today.
Fernandes said AirAsia had already adjusted its fares to account for jet-fuel prices of up to about US$180 per barrel but retained room for further increases if necessary.
“I still think we should go higher if need be. It’s not what we want to do, but I think there’s a lot more room for elasticity before it kills the market,” he said.
On whether further fare increases could affect travel demand, Fernandes said demand remained resilient, with AirAsia recording a load factor of at least 80 per cent.
“If you look at our airfares in 2019 and our airfares now, it’s quite a big jump. Demand has not changed, which is good. It shows that people still want to fly even though airfares are going up by 20 to 25 per cent.
“Our load factor is 80 per cent and above, which is decent. We want to move up to 90 per cent, and we will do our best to do that,” he added.
On its Malaysian operations, Fernandes said AirAsia Malaysia remained the group’s largest and strongest business, with additional aircraft expected to be deployed soon.
“Malaysia is our biggest and strongest, and the business is very strong. We are adding aircraft very soon.
“In Malaysia, we have a 60 per cent market share, which we are predicting will grow to 70 per cent,” he added.
AirAsia Group reported a net loss of RM830.5 million for the second quarter ended June 30, 2026, after average jet-fuel prices rose to US$183 per barrel and fuel expenses increased 58 per cent year-on-year.
The quarterly result included a foreign-exchange loss of RM331 million. Excluding the foreign exchange impact, the group would have recorded a net loss of RM499.6 million.
According to the group’s financial results, its core Malaysian short-haul operations remained profitable during the quarter, while financial pressures were concentrated in Malaysian long-haul operations and the group’s short-haul businesses in Thailand, Indonesia and the Philippines.
AirAsia shares have lost more than 70 per cent of their value since the beginning of the year amid concerns over elevated jet-fuel prices and the group’s financial position.
Fernandes said the group’s operating fleet was nearing full restoration, with the remaining aircraft expected to return to service by October.
“We had to put 250 planes back into operation. We are still not 100 per cent finished with the 250 planes. We have about 10 left, which should be finished by October,” he said, adding that AirAsia had also returned 25 older, less fuel-efficient aircraft to lessors to reduce lease obligations and operating costs. — Bernama
Date: 18 September, 2026 5:06 pm
Source: Malay Mail
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