AIRLINE operators are facing unprecedented uncertainty amid the escalating conflict in West Asia, with rising fuel costs and geopolitical tensions leaving the industry “pretty powerless,” according to Capital A chief executive Tan Sri Tony Fernandes.
Fernandes said that “airlines are increasingly at the mercy” of political decisions worldwide, with daily fluctuations in oil prices adding further instability.
“There is little visibility on how this will affect our businesses, with oil prices fluctuating by the day,” he wrote in a LinkedIn post today, underscoring the unpredictability facing carriers across Asia and beyond.
Despite the turbulence, Fernandes insisted that AirAsia remains resilient and capable of withstanding the crisis.
“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.
He acknowledged the broader uncertainty gripping the world but stressed the importance of connection and understanding.
“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,” Fernandes explained, linking this principle to AirAsia’s founding mission.
Founded to “democratise the skies,” AirAsia has long sought to make air travel accessible to the general public, enabling people to experience new cultures and realise the world is “far bigger and more connected than what you see in the news,” he told Bernama.
Fernandes added that airlines, trains, and technology serve not only as commercial tools but as 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 ongoing Iran conflict has already disrupted airport operations globally, with thousands of Middle Eastern flights cancelled and regional airspace closed following U.S. and Israeli strikes on Iran on February 28.
Reports indicate around 27,000 flights to West Asia have been cancelled since the start of the conflict, affecting thousands of passengers.
Airlines in Asia are now reassessing fares and operational plans, as jet fuel prices climb in response to the crisis. Jet fuel, which had been trading between US$85 and US$90 per barrel before the conflict, has recently surged above US$100 per barrel, prompting some carriers to introduce fuel surcharges to offset the cost increases. - March 12, 2026
