Capital A CEO Tony Fernandes says airlines are at the mercy of global politics and volatile fuel prices, but AirAsia remains resilient and ready to weather the storm.
KUALA LUMPUR: Airlines feel “pretty powerless” amid escalating geopolitical tensions and volatile fuel prices, according to Capital A chief executive officer Tony Fernandes.
He stated that “airlines are increasingly at the mercy” of political decisions worldwide, with little visibility on how the unfolding West Asia conflict will affect the industry.
“There is little visibility on how this will affect our businesses, with oil prices fluctuating by the day,” he said in a LinkedIn post.
Despite the challenging environment, Fernandes emphasised that AirAsia remains resilient and fundamentally strong.
“No matter what life throws at us – COVID-19, SARS, two wars – AirAsia is ready and fundamentally strong to weather this temporary storm,” he stressed.
He added that his core belief has always been that increased human connection fosters understanding and reduces hatred.
This belief was a core motivation behind founding AirAsia, which aimed to democratise air travel and connect people across cultures.
“Every flight that takes off carries more than passengers. It carries stories, friendships, and sometimes even understanding,” Fernandes said.
The Iran conflict has significantly disrupted global airport operations, leading to thousands of cancelled flights in the Middle East.
Some 27,000 flights to West Asia have been cancelled since the conflict began, affecting thousands of passengers.
Airlines in Asia are now reviewing fares and operational plans as rising jet fuel prices ripple across the industry.
Jet fuel prices have surged above US$100 per barrel recently, up from between US$85 and US$90 before the conflict.
