Tony Fernandes says AirAsia faces milder crisis than COVID despite fuel surge

At a press event, AirAsia co-founder Tony Fernandes highlighted that the low-cost carrier’s present difficulties, driven by a steep increase in jet fuel prices, are "far, far" less severe than the disruptions caused by the COVID-19 pandemic. He pointed to ongoing strong demand for air travel as a key factor sustaining the business. Fernandes said the second quarter had been the most challenging due to fuel costs that jumped 66 percent from the previous quarter to about US$183 a barrel, a rise linked to the US-Israeli war on Iran.

The airline is responding by tweaking its fare structure to offset the higher fuel expense. The briefing came two days after it was reported that Malaysia’s authorities were asking Malaysia Airlines and Batik Air whether they could take on AirAsia’s domestic market share as part of broader scenario planning.