Fernandes, who is also the CEO of Capital A, said the low-cost carrier would trim capacity and revise fares upwards to cushion the impact of higher fuel costs stemming from the West Asia crisis.
Such adjustments were necessary to sustain operations amid the ongoing volatility.
He said the airline was leveraging its experience from past crises, including the Covid-19 pandemic, to navigate the current challenges, adding that demand for air travel remained resilient despite rising costs.
He said AirAsia was also accelerating operational improvements and ecosystem integration to mitigate pressures, including strengthening its cargo segment, enhancing connectivity across its network, and leveraging digital platforms such as MOVE and AirAsia NEXT to drive demand, while improving maintenance efficiency and on-time performance.
He said AirAsia’s cargo business continued to see robust demand, supported by 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 an AirAsia X media briefing here today.
AirAsia X group CEO Bo Lingam said the airline would continue to revise fares based on the current situation and fuel prices, adding that any increase would be implemented carefully to balance affordability and cost recovery.
To date, he said AirAsia X had reduced about 10% of its flights, largely reflecting seasonal demand patterns following the Hari Raya peak period.
He said AirAsia’s extensive domestic and Asean network allowed the airline to spread capacity efficiently while maintaining competitive pricing across markets.
On expansion plans, Bo reaffirmed the airline’s commitment to launching flights to Bahrain in June, subject to geopolitical developments.
He said other routes, including to Busan, are proceeding as scheduled.
‘No job cuts’
Bo gave assurances that AirAsia X was not cutting jobs or offering staff voluntary unpaid leave as an option to manage the rising costs.
He said the group remained committed to preserving its workforce despite the ongoing industry challenges.
“There are no staff cuts and no voluntary unpaid leave at this point,” he said.
His comment followed reports that Batik Air Malaysia had offered staff voluntary unpaid leave as part of its cost management efforts.
Batik Air Malaysia said last week that the airline would cut 35% of its scheduled flights in the first half of April and offer voluntary unpaid leave to employees, with applications open until April 3 for leave starting April 6.
‘Just bad timing’
Bo also said AirAsia had not engaged in fuel hedging despite plans to do so, as rising oil prices and financial constraints hindered the airline’s ability to secure costs.
He said discussions on hedging strategies were shelved due to timing and liquidity considerations.
“We were working on this and preparing for hedging, but this happened before we could execute. It is just bad timing,” he told reporters after the media briefing.
Bo said the group currently lacked the financial flexibility to hedge fuel, adding that fuel prices had effectively doubled, placing significant pressure on operating costs.
“It makes no sense to hedge now. We do not have the money to hedge at these levels,” he said.
The airline was instead focusing on operational adjustments and cost management to navigate the volatility, optimising capacity deployment.