KUALA LUMPUR - AirAsia X is adjusting flight capacity, controlling costs and revising fares to manage rising fuel prices.

Co-founder and Adviser, Tony Fernandes said the airline is reducing capacity and increasing fares due to higher fuel costs caused by the West Asia crisis.

He said these steps are needed to keep the airline running during ongoing market uncertainty.

Fernandes said the airline is using lessons from past crises such as the Covid-19 pandemic to manage current challenges.

He added that demand for air travel remains strong despite higher ticket prices.

This includes growing its cargo business, improving network connectivity and using digital platforms such as MOVE and AirAsia NEXT.

Fernandes said cargo demand remains strong through its logistics arm Teleport.

“There is strong demand for our cargo business and we are working to ensure that we have sufficient capacity to meet that demand,” he said at a media briefing on April 6.

Group CEO Bo Lingam said fares will continue to be adjusted based on fuel prices while keeping a balance between affordability and costs.

He said AirAsia X has reduced about 10% of flights, mainly due to seasonal demand after the Hari Raya period.

Bo said the airline’s wide network in Malaysia and Asean helps it manage capacity and keep fares competitive.

He also confirmed plans to launch flights to Bahrain in June, depending on geopolitical conditions.

Flights to destinations such as Busan will continue as planned.

“There are no staff cuts and no voluntary unpaid leave at this point,” he said.

He said the company remains committed to protecting jobs despite industry challenges.

AirAsia X, which employs around 1,000 to 1,500 staff is also improving operations and expanding its ecosystem to reduce cost pressure.

Bo was responding to reports that other airlines, including Batik Air Malaysia, had introduced unpaid leave options and reduced flights.

He also said AirAsia had not been able to implement fuel hedging due to timing and financial constraints.

“We were working on this and preparing for hedging, but this happened before we could execute. It is just bad timing,” he added.

Bo said the airline currently lacks the financial flexibility to hedge fuel as prices have doubled.

He said the focus now is on operational adjustments and cost control to manage rising expenses.