The Malaysian Aviation Group (MAG) says that Malaysia Airlines has adjusted its fares by between 20% and 30%, in line with industry trends. Speaking with the New Straits Times, MAG group CEO Captain Nasaruddin A. Bakar said that, more specifically, Malaysia Airlines had increased fares by the aforementioned figures. This is noted to be “in line with other airlines, both regionally and globally”.
According to the report, Nasaruddin says that fuel costs for Malaysia Airlines accounts for about 30% of the airline’s operating costs. But since “the conflict that took place around 28 February”, this has risen to about 50%. In response, the national carrier has implemented fuel hedging, or locking in fuel supply prices, to cushion about 36% of the impact of fluctuating fuel prices.
That being said, it’s unclear if this is a new measure that’s being implemented, or an overview of price changes over the past few months. A couple of months back, Malaysia Airlines, alongside others such as AirAsia, implemented price hikes in response to the immediate aftermath of the situation in the middle east.
More recently, The Star reports that local airlines are adapting to the changes in jet fuel prices by reducing flight frequencies and consolidating routes. The report also cites Transport Minister Anthony Like as saying that the change in flight frequency has not caused major operational disruptions.
Separately, the newspaper also reported that AirAsia X is reviewing its fares while expecting to gradually lower their prices following the recent decline in jet fuel prices.The report also mentions that the budget airline previously reduced fare prices by about 5% around two weeks ago. This report cites group CEO Bo Lingam as saying that “fuel prices have gone down, and the industry has been significantly impacted by the increase in fuel prices. So hopefully, everything in West Asia is getting better, and we can move on immediately after that”.
(Source: NST, The Star [1], [2], [3])
