While the reopening of global borders has accelerated air travel recovery, airlines are currently facing significant headwinds with high fuel prices. The current Russian-Ukraine conflict has raised concerns and challenges in managing operational cost, which is directly impacted by the escalating fuel price. All companies within Malaysia Aviation Group (MAG) have taken immediate steps to manage the impact of higher fuel costs. Safety remains the top priority for MAG and measures have been taken to avoid conflict zone.
"We continue to closely monitor the level of capacity coming into the market as all airlines rush to ramp up operations. The challenge is to work towards the right level of supply of seats versus the level of demand that is expected to exist in the market. Too much supply and we are likely to see a price war which is unhealthy and unsustainable. The airline is pro-actively managing its capacity to mitigate unprofitable routes due to rising fuel costs," says Amit.
However, with support from sister airlines under MAG: Malaysia Airlines, Firefly, MAS wings, and AMAL, they will progressively ramp up capacity and introduce new strategic routes over the coming months given the reopening of borders to international destinations, as they anticipate travel demand for international travel to pick up.
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