AirAsia Fuel Surcharge effective 3 May 2011

Only a month ago, AirAsia group chief executive officer Datuk Seri Tony Fernandes said the airline had no no plans to impose a fuel surcharge although other airlines had done so.

Credited below, is the announcement made by AisAsia:

Please be informed that AirAsia will be reintroducing fuel surcharges beginning 3 May 2011 for all domestic and international routes. The reintroduction of fuel surcharge by AirAsia is to offset the escalating jet fuel, which has exceeded USD$140 per barrel

The rising jet fuel prices and the continuous upward spiral caused by the situation in the Middle East 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. We hope that this will only be a temporary measure, and AirAsia will continue to ensure our fares remain low despite the fuel surcharge, which is the lowest in the world. While other carriers were already adjusting fares and increasing fuel and admin charges to counter rising operating costs when jet fuel price went above USD$100 per barrel on 2 March this year, the strong growth of our ancillary income has helped us delay the implementation of fuel surcharge for as long as possible.

As the people’s airline, we insist on being transparent and decided to announce to our guests on the reintroduction of fuel surcharge. AirAsia remains committed to its low-cost model and will not transfer the full cost of the fuel price hike to its guests, choosing instead to counter the spike by aggressively growing revenue through ancillary products and services. Our recent partnership with Expedia, the world’s largest online travel agency and other initiatives currently in the pipeline will further increase our revenue from ancillary income.

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