AirAsia X announced Monday that it would raise ticket prices by 31 to 40 percent and reduce flight capacity due to increased fuel surcharges linked to the conflict involving Iran. The Malaysia-based low-cost carrier attributed the rising costs to the fallout from US-Israeli strikes on Iran in late February, which triggered Tehran's closure of the Strait of Hormuz, disrupting key oil shipping routes. About 10 percent of the airline's overall flights have already been cut, though its planned launch of services to Bahrain—its first Middle East hub—is still scheduled for June. Chief commercial officer Amanda Woo said the airline was rerouting operations to areas where higher fuel surcharges could be recovered, while also reducing baggage fees to offset some passenger costs. Founder Tony Fernandes described the fare hikes as "unavoidable" and confirmed capacity cuts on unprofitable routes. The airline, which reported a 1.96 billion ringgit ($486 million) profit in 2025 after pandemic losses, said the current crisis had disrupted its recovery momentum. Independent non-executive chairman Jamaludin Ibrahim said the outlook for 2026 remained "manageable" but hinged on how long the Middle East conflict lasts.

💡 NaijaBuzz Take

AirAsia X's price surge shows how regional conflicts can ripple through global travel economics, even for budget carriers. With fares rising up to 40 percent and network adjustments underway, the airline's struggle highlights the vulnerability of recovery-era aviation to external shocks. For Nigerian travellers eyeing affordable international routes, this could mean fewer low-cost options and higher expenses on already limited long-haul budgets. The fact that a profitable airline like AirAsia X is trimming capacity signals that cost pressures are no longer absorbable—passengers will bear the burden.