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.