AirAsia X Raises Fares Up to 40% Amid Iran War, Keeps Jobs, Bahrain Plans Intact

AirAsia X on Monday said it is raising fares 31% to 40% and adding a 20% fuel surcharge, as it tries to keep planes flying and its business intact during the Iran War.

The Southeast Asian low-cost carrier didn’t hedge any fuel, Group CEO Bo Lingam said at a press conference on Monday. Fuel hedging is when airlines buy fuel in advance at a fixed price, so they are protected if oil prices suddenly rise later.

The airline said the fuel it paid prior to the war was around $80-$90. Now it pays an average of about $200.

However, the airline said it is being mindful about keeping fares affordable. “Having the largest capacity within the ASEAN market, especially domestic, we’re able to spread, in a very careful way, to the route that we think we can actually recover the current high fuel surcharge,” said Chief Commercial Officer Amanda Woo.

While fares have gone up, the airline said it has cut its baggage fees.

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