AirAsia X lowered its airfares by approximately 5% starting June 15, 2026, following a significant drop in jet fuel prices from a March 30 peak of US$242 per barrel to about US$112 per barrel by mid-June [1, 2, 3, 4, 5].
The airline had scaled back about 10% of its flights earlier this year amid soaring fuel costs driven by the US-Iran conflict [1, 2, 3, 4, 5]. Despite these disruptions, AirAsia X maintained an average load factor near 83% from January through May 2026 [6, 4].
AirAsia X CEO Bo Lingam said the airline regularly reviews fares, noting, "Week by week, as fuel prices go down, we will also be revising our fares" [1]. He added, "We want all our aircraft flying and we want them full. When fuel prices go down, we want fares to come down" [6].
In response to market challenges, AirAsia X has renegotiated contracts with lessors and suppliers while adjusting flight operations over the past three months, an ongoing effort to improve cost efficiency [1, 2, 3, 4, 5]. However, airport charges continue to pose a major cost hurdle. Bo Lingam highlighted Singapore airport taxes of around S$72 as a factor making the Jakarta-Singapore route unsustainable, contributing to its suspension [4].
The airline reported losses exceeding RM150 million (about S$47 million) in the first quarter of 2026 due to fuel price spikes [6, 4]. It expects to fully restore its flight network capacity by the end of August 2026 [1, 2, 6, 3, 5].
AirAsia X also announced plans to modernize its fleet with Airbus A321LR aircraft deliveries beginning this year and Airbus A220 jets arriving by the end of 2027 [1, 4].
Other Asian carriers have been slower to reduce fares despite falling fuel prices, citing persistent high fuel and operational costs [7, 5]. Industry views diverge, with some expecting widespread fare cuts if fuel remains below US$100 per barrel, while others predict airlines will keep fares tight to rebuild margins [7, 5].
AirAsia X’s next major milestone is the full capacity restoration target slated for August 31, 2026 [1, 2, 6, 3, 5].
