Due to the soaring fuel costs, Asia Airlines is raising ticket prices and cutting capacity for long-haul flights.

Malaysia's budget airline AirAsia X said that the company had to raise ticket prices and reduce capacity to offset the impact of the oil supply shock related to the conflict in the Middle East. Tony Fernandes, co-founder and advisor of AirAsia X, said at a press conference on Monday that ticket prices must be adjusted as needed, but the company will try to "keep them as low as possible," and will cut unprofitable capacity to offset high fuel costs. Despite facing challenges, Fernandes said the company is still committed to establishing its planned hub in Bahrain, with the maiden flight scheduled for June 26. CEO Bo Lingan said the airline has reduced flights by about 10%, mainly in the off-season after the Eid holiday, and is evaluating routes to temporarily cut service on some underperforming routes, while permanently cutting others. Ticket prices have increased by 30%-40%, including around 20% in fuel surcharges, but the company is working to maintain affordability of travel by reducing additional fees such as baggage fees. Lingan said that after the Iran conflict, fuel costs have more than doubled, and due to current market conditions, the company has not hedged. He also said that oil prices remain the most critical factor, with limited impact from exchange rate fluctuations. According to guidance from the national oil company Petroliam Nasional, Lingan said the company has sufficient aviation fuel supply until June and is working to ensure further supply. Lingan added that there have been no delays in aircraft deliveries and the company expects the delivery of four aircraft to proceed as planned this year.