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Adverse impact on high jet fuel prices for at least Q2 & Q3 even if Middle East conflicts end this month. Situation still rather fluid and is fast developing into currency crisis. RM may be shielded but other regional currencies (Rupiah, Pesos, Baht etc.) will be badly affected.
Demand destruction as low cost carrier total airfares is now (May/June 2026) pricier (after air fares increases and fuel surcharges) due to non hedging of jet fuels than other normal airlines airfares (eg. MAS, Qantas, SIA, Scoot etc.). Low-cost carriers do not have premium or long-haul traffic that is typically more immune to airfare increases.
It will be dependent on how many flights need to be grounded, booking demand based on fares increases plus fuel surcharges and how long (months) will jet fuel price stayed elevated. Just monitor the air ticket prices between Peninsular Malaysia to/from East Malaysia via AAX & MAS from May 2026 onwards.