Ukraine crisis revives fuel surcharges

SEPANG, Malaysia, 11 March 2022: AirAsia Malaysia reintroducing fuel surcharges starting 8 March for all its domestic and international flights.

The reintroduction of the fuel surcharge by AirAsia is to offset the escalating jet fuel prices, which have now exceeded USD120 per barrel and still climbing.

AirAsia stopped charging fuel surcharges in 2015. The airline has instead been absorbing the oil price increase over the years, while other carriers were already adjusting fares and increasing fuel and admin charges to counter rising operating costs as early as 2018.

AirAsia Malaysia Fuel Surcharge rates effective 8 March 2022

The fuel surcharges are applicable for new flight bookings made on and after 8 March 2022. All bookings made before 8 March 2022 will not be affected.

AirAsia Malaysia CEO Riad Asmat said: “Airlines the world over are affected by the rising oil prices and the continuous upward spiral caused by the situation in Eastern Europe and other external factors have made it imperative for us to reintroduce the fuel surcharge, despite our best efforts to resist it for as long as we could.

“Since we last abolished fuel surcharges in 2015 when the global fuel price was as low as USD48 a barrel, we have faced numerous occasions when the fluctuations have caused other airlines to start imposing surcharges. However, at AirAsia, we have been absorbing past increases in oil prices to continue to provide the best value to our guests. Unfortunately, the current situation where the oil price has shot up more than 160% than what it was in 2015 has made it no longer sustainable.”

AirAsia has twice removed its fuel surcharge in the past. It first introduced a fuel surcharge in 2005 and abolished it in 2008, and later reintroduced it in 2011. In 2015 the jet fuel price was at its high of USD78 per barrel, but AirAsia decided to immediately remove the fuel surcharge as soon as the price went down to around USD48 per barrel that year.