AirAsia's Fernandes says travel demand remains strong, current crisis ‘far’ less severe than Covid

[HONG KONG] AirAsia co-founder Tony Fernandes said on Friday (Sep 18) that the low-cost carrier’s challenges from soaring jet fuel costs were “far, far” less severe than those it faced during the Covid-19 pandemic period.

Speaking at a media briefing, he also said strong demand for air travel continued to support the business.

The media briefing came two days after Reuters reported, citing sources, that Malaysia’s government had asked Malaysia Airlines and Batik Air whether they could absorb AirAsia’s domestic market share.

The sources said it was part of what they described as scenario planning while authorities monitor the financial health of South-east Asia’s largest low-cost carrier.

Fernandes told reporters the second quarter marked the toughest period for the airline and he forecast improving conditions as AirAsia adjusts fares to reflect higher fuel costs.

The airline has been hit by soaring jet fuel costs stemming from the US-Israeli war on Iran that surged 66 per cent in the second quarter from the prior quarter to an average of US$183 ​a barrel. REUTERS