KUALA LUMPUR: Airlines feel “pretty powerless” at present amid escalating geopolitical tensions and volatile fuel prices, with little visibility on how the unfolding West Asia conflict will affect the aviation industry, said Tan Sri Tony Fernandes.
The Capital A chief executive officer stated that “airlines are increasingly at the mercy” of political decisions made worldwide, while oil prices continue to fluctuate daily, creating significant uncertainty for the sector. “There is little visibility on how this will affect our businesses, with oil prices fluctuating by the day,” he said in a LinkedIn post today.
Despite the challenging environment, Fernandes emphasised that AirAsia remains resilient and fundamentally strong enough to weather the situation.
“As I write, two wars are going on; wars we don’t even know why they have started and, worse yet, how they will end. But one thing is for sure. No matter what life throws at us – Covid-19, SARS, two wars – AirAsia is ready and fundamentally strong to weather this temporary storm,” he said.
Fernandes stressed that there is significant uncertainty and volatility worldwide. “I’m a simple man, and I have always believed in something simple: the more people meet each other, the more they understand. The more they see eye-to-eye, literally, the harder it is to hate one another,” he added.
Fernandes said this belief was one of the core motivations behind the founding of AirAsia, which aimed not only to build a business but also to connect people.
“It was about democratising the skies so the common man could travel, see and experience new cultures, and learn that the world is far bigger and more connected than what you see in the news.:
Fernandes pointed out that airlines, trains, and technology are not just tools of commerce but also bridges between cultures.
“Every flight that takes off carries more than passengers. It carries stories, friendships, and sometimes even understanding. The world is a better place when people connect and chip away at ignorance, and as we have done for the past 25 years, come rain or shine, AirAsia will do our part,” he said.
The Iran conflict has significantly disrupted airport operations globally, with thousands of Middle Eastern flights cancelled and airspace in the region closed after the United States and Israel launched strikes on Iran on Feb 28. According to news reports, some 27,000 flights to West Asia have been cancelled since the conflict began, affecting thousands of passengers.
Following the conflict, airlines in Asia are reviewing fares and operational plans as rising jet fuel prices linked to escalating tensions in West Asia begin to ripple across the aviation industry, with some carriers already introducing fuel surcharge adjustments. Jet fuel prices, previously hovering between US$85 and US$90 (RM334 and RM354) per barrel before the conflict, have surged above US$100 per barrel in recent days.
