KUALA LUMPUR – AirAsia is expecting to be bolstered by strong demands amid rising global oil prices as a result of the Russian conflict with Ukraine.
Capital A CEO Tan Sri Tony Fernandes said in a press conference today that fuel “will be expensive in the short term”.
“But I think there’s a lot of froth in that oil price, a lot of speculation, it was US$115 (RM480), then it came down to US$108. We’re not worried about it at the moment because there is more demand than supply.”
After the launch of the #TimeToListen campaign today, Fernandes added that fares will be higher due to oil prices but will remain relatively cheap as well as declining Covid-19 PCR test prices.
He said the oil prices will eventually stabilise, pointing out that the Opec+ – a cartel of 15 of the world’s leading oil producers including Saudi Arabia, Iran and Iraq – has maintained its level of output.
“Opec+ is still producing the same oil, so they want to enjoy these high prices.
“Since we have 250 planes, we hope oil prices will come down a little bit.”
Brent crude oil price rebounded early today to above US$114 per barrel after a contraction of more than 2% yesterday amid the escalating Russia-Ukraine war. – The Vibes, March 4, 2022
