AirAsia X committed to opening Bahrain hub despite Middle East conflict

AirAsia X in February unveiled plans to resume flights from Kuala Lumpur to London via the Bahrain hub, its first outside Asia, with services due to begin on June 26.

That announcement however came before U.S. and Israeli airstrikes on ⁠Iran later that month, which disrupted aviation across the Middle East, with many airlines cancelling routes to avoid airspace in the region.

AirAsia X chief executive Bo Lingam told a press conference that the Bahrain service would definitely go ahead if the conflict ends before June, but declined to say if it would proceed in the event of a protracted conflict.

"Anything's possible," he said, when asked if the airline would pursue alternate routes to Europe, such as via its existing flights to Turkey.

The airline - which in ‌January completed ⁠its takeover of the short-haul aviation business from its former parent and affiliate Capital A (CAPI.KL) - has been hit hard by the conflict, which saw jet fuel prices soaring.

Fuel shortages in Asia have also led some countries to place limits on plane ⁠re-fuelling, Bo said.

AirAsia X co-founder and Capital A chief executive Tony Fernandes said the airline will need to raise fares and trim capacity in places where it can no longer ⁠cover fuel costs, with jet fuel prices rising to up to $300 per barrel in some markets.

Fernandes said demand for flights remained high, however, and he was optimistic ⁠the airline would return stronger after the crisis ends.

The company has raised fuel surcharges by about 20%, while fare prices have increased between 31% and 40%, it said.