Business

Batik Air Malaysia reduces flights, offers unpaid leave following fuel cost hike

In an internal memo dated April 1, the company said the move was taken as a precautionary measure to protect its financial position at a time when jet fuel prices are at record highs.

Updated 6 months ago · Published on 03 Apr 2026 6:20PM

Batik Air Malaysia reduces flights, offers unpaid leave following fuel cost hike
The move is also in line with the concerns raised by the industry regarding fuel supply constraints. - April 3, 2026

MALAYSIA’S Batik Air will reduce its flight schedule by up to 35 per cent for the first half of April due to a sharp increase in fuel costs driven by geopolitical tensions in West Asia.

In an internal memo dated April 1, the company said the move was taken as a precautionary measure to protect its financial position at a time when jet fuel prices are at record highs.

As part of its cost management efforts, Batik Air Malaysia is also offering voluntary unpaid leave to approximately 3,500 of its employees, and applications are open until April 3, with the leave period starting April 6.

Chief Executive Officer, Datuk Chandran Rama Muthy, confirmed that the current situation shows that global fuel supplies are increasingly limited and are expected to be sufficient for the next few months.

"The company needs to take proactive steps in managing operations to reduce financial risks and ensure long-term business continuity.

"If operations continue without adjustments, it could increase financial and operational risks, as well as impact the stability of the entire aviation industry," he said.

He also stressed that this decision was not easy, but necessary in the current challenging and uncertain situation.

The move is also in line with the concerns raised by the industry regarding fuel supply constraints.

Batik Air Malaysia hopes that passengers will understand the situation and continue to provide support, as the company strives to maintain stable, safe and reliable operations throughout this period. – April 3, 2026

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