Investing.com UK - Financial Markets Worldwide
🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Shares

Malaysia's AirAsia removes fuel surcharges due to lower oil prices

Published 26/01/2015, 09:41
© Reuters. An AirAsia plane is seen on the runway at Kuala Lumpur International Airport
KLSE
-
CAPI
-

KUALA LUMPUR (Reuters) - Malaysian budget carrier AirAsia Bhd (KL:AIRA), which lost a jet in Indonesia's Karimata Strait last month, on Monday said a drop in global oil prices has allowed it to remove fuel surcharges for passengers.

Oil prices have fallen around 60 percent since the middle of 2014 due to slowing demand and rising supplies from countries such as the United States, exacerbated by the Organization of the Petroleum Exporting Countries deciding not to cut output.

"We believe removing fuel surcharges and reducing travel costs will be a huge boost to the tourism industry," AirAsia said in a statement.

The surcharge removal will also apply to regional affiliates in Thailand and Indonesia, as well as long-haul arm AirAsia X Bhd .

AirAsia removed the surcharge for all of its flights in 2008, but restored it in 2011 as fuel prices rose sharply, the airline said.

Shares of AirAsia closed 0.7 percent lower on Monday, versus a 0.4 percent fall in the broader index (KLSE).

© Reuters. An AirAsia plane is seen on the runway at Kuala Lumpur International Airport

On Dec. 28, AirAsia flight QZ8501 crashed less than halfway into a two-hour flight from Indonesia's second-biggest city of Surabaya to Singapore, killing all 162 people on board.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.