AirAsia X committed to opening Bahrain hub despite Middle East conflict

KUALA LUMPUR: Budget carrier AirAsia X said on Monday that it remained set on opening a planned hub in Bahrain in June, though the airline’s chief executive was non-committal on whether the plans would go ahead if the Middle East conflict drags on.

AirAsia X in February unveiled plans to resume flights from Kuala Lumpur to London via the Bahrain hub, its first outside Asia, with services due to begin on June 26.

That announcement however came before US and Israeli airstrikes on Iran later that month, which disrupted aviation across the Middle East, with many airlines cancelling routes to avoid airspace in the region.

AirAsia X chief executive Bo Lingam told a press conference that the Bahrain service would definitely go ahead if the war ends before June, but declined to say if it would proceed in the event of a protracted conflict.

“Anything’s possible,” he said, when asked if the airline would pursue alternate routes to Europe, such as via its existing flights to Turkiye.

Oil prices rise as US-Israeli war with Iran continues to disrupt supply

The airline - which in January completed its takeover of the short-haul aviation business from its former parent and affiliate Capital A - has been hit hard by the conflict, which saw jet fuel prices soaring. Fuel shortages in Asia have also led some countries, including Thailand and Vietnam, to place limits on plane re-fuelling, Bo said.

AirAsia X co-founder and Capital A chief executive Tony Fernandes said the airline will need to raise fares and trim capacity in places where it can no longer cover fuel costs, with jet fuel prices rising to up to $300 per barrel in some markets.

Fernandes said demand for flights remained high, however, and he was optimistic the airline would return stronger after the crisis ends. The company has raised fuel surcharges by about 20%, while fare prices have increased between 31% and 40%, it said.