PETALING JAYA: The bearish crude oil prices may allow low-cost carrier AirAsia Bhd to reduce airfares and boost its regional network.
AirAsia chief executive officer Aireen Omar, however, declined to say how much the fares would go down but added that it was the airline’s objective to offer low fares.
She said lower oil prices would allow the company to have more room to add value to the business.
“With more than 50 per cent drop in oil prices, there is a chance of rebuilding our network in Southeast Asia. We are mindful that 2014 has been a challenging year for the aviation industry. We moved to a new and bigger airport and had to change the way we do things in order to maintain cost efficiency,” she said at AirAsia’s Great 13th Anniversary Challenge, here, on Saturday.
“Next year, we will rebuild our strength, consolidate and become more cost-efficient.”
Last Friday, crude oil prices fell to new low since 2009. Brent crude was down to about US$62 (RM217) per barrel.
While lower oil prices were an advantage to the carrier, Aireen said AirAsia must find ways to ensure that fuel consumption was efficient.
She said AirAsia’s performance should be positive next year, with profits likely better than this year.