AirAsia X has reaffirmed its commitment to opening a new hub in Bahrain in June, despite the ongoing conflict in the Middle East that has caused widespread disruption in regional aviation. The airline announced plans in February to launch flights from Kuala Lumpur to London via Bahrain, marking its first route outside Asia. However, escalating US and Israeli airstrikes on Iran prompted many airlines to cancel routes and avoid certain airspaces.
According to Chief Executive Bo Lingam, the Bahrain service will proceed if the conflict ends before the scheduled start in June. He indicated uncertainty about delays if the war persists, but expressed willingness to consider alternative routes, such as those via Turkey. The airline, having recently completed its takeover of its short-haul business from Capital A, faces mounting challenges due to soaring jet fuel prices and regional fuel shortages.
Impact of Rising Fuel Costs
Fernandes, co-founder and CEO of Capital A, revealed that the airline plans to increase fares and trim capacity where it can no longer absorb fuel costs. Jet fuel prices have surged to as high as US$300 per barrel in some markets. The company has already raised fuel surcharges by approximately 20%, with ticket prices increasing between 31% and 40% to offset expenses.
Despite these hurdles, Fernandes remains optimistic about the airline's future, citing continued high demand for air travel in Asia. He emphasized the airline’s resilience and potential for growth once the regional crisis subsides.
