Key facts
- AirAsia expects to restore most of its flight capacity by August.
- Fares were lowered by 5% on June 15 as jet fuel prices decline.
- The airline lost over RM150 million in the first quarter due to high fuel costs.
- Singapore jet fuel prices have fallen significantly from their March peak.
Southeast Asian budget carrier AirAsia expects to restore most of its flight capacity by August, as fuel costs ease following a period of price volatility. CEO Bo Lingam stated that fares were lowered by 5% on June 15, with further revisions planned as fuel prices stabilize. The airline had cut underperforming flights and renegotiated contracts over the past three months to mitigate the impact of rising oil prices. AirAsia X posted a first-quarter loss of over RM150 million due to volatile jet fuel prices, which had led to added fuel surcharges. Despite the losses, the group maintained an 83% load factor between January and May. Singapore jet fuel traded at about $112 a barrel on Friday, significantly lower than its March high of $242. The airline is also phasing out 12 ageing aircraft and acquiring new Airbus A321LR jets.