Malaysia Aviation Group (MAG) said jet fuel prices are likely to hover between US$120 and US$130 per barrel over the next year based on current forward market indications. Captain Nasaruddin A. Bakar, MAG’s newly appointed president and group CEO, said, "Based on the forward curve we see, we believe in the next one year it will be hovering between US$120 and US$130 per barrel" [1].
Jet fuel prices were around US$100 per barrel before geopolitical tensions involving Iran pushed prices as high as US$240 per barrel. These tensions have impacted the aviation sector through both higher fuel costs and concerns over fuel supply, creating operational challenges for airlines worldwide, including Malaysian carriers, Captain Nasaruddin noted: "As an airline that uses fuel, both on the cost bit and also the supply bit, it is impacting Malaysian airlines" [2].
Fuel accounts for about 30% of MAG’s overall cost structure. The recent surge in fuel prices has added roughly 20% to airline operating costs, further straining margins across the industry [1, 2, 3]. Despite these pressures, MAG is not currently passing fuel cost increases on to passengers. Captain Nasaruddin said, "However, we are not passing through (the costs) to the passengers at this point of time, but we are trying as much as we can to cushion the fuel costs" [3].
MAG is implementing mitigation measures to manage these cost challenges while navigating an evolving aviation landscape. Changes in global travel patterns linked to disruptions affecting West Asia routes have created new opportunities for Southeast Asian carriers. Captain Nasaruddin highlighted increased transit traffic, stating, "There's a lot of market that we're seeing, especially from Australia and New Zealand, flying through Kuala Lumpur, flying through Singapore and" other regional hubs [3].
Nasaruddin A. Bakar was appointed MAG president and group CEO on February 1, 2026. He spoke about the fuel price outlook and operational impacts at Wisma Bernama on May 20 following his official visit [1, 3]. The New Straits Times published a related report on May 21 [2].
