Malaysia says airlines may suspend some flights on fuel costs

[KUALA LUMPUR] Malaysia said that airlines may need to suspend some flights if the Middle East war pushes fuel costs significantly higher.

Jet fuel accounts for almost half of airlines’ operating costs, Malaysia’s Transport Minister Anthony Loke said late Thursday (Mar 12). He met with airline management, airport operators, jet fuel suppliers and aviation authorities to coordinate their response to the US-Israeli war with Iran.

The transport ministry “will discuss with airports and relevant stakeholders to support the survival of local airlines”, he said.

Airlines will also share data with Malaysia’s aviation authorities for a more comprehensive risk assessment, Loke said. “All parties also agreed to meet weekly as this crisis remains volatile and requires rapid action in the event of new developments,” he added.

In the short term, Malaysia needs to ensure that air cargo services for goods such as food can continue to operate “despite the increasingly challenging conditions”, especially in the run-up to the Eid-ul-Fitr celebrations next week, Loke said. BLOOMBERG