Low-cost airlines in Southeast Asia are facing heavy pressure from rising oil prices and weaker currencies. AirAsia announced it will cut seat capacity by 20 to 25 percent in the third quarter compared with a year earlier, return 25 older aircraft by 2026, and suspend the Sydney–Kuala Lumpur route from October. Meanwhile, Scoot's operating loss nearly doubled to 32 million Singapore dollars as cost per passenger jumped 21.7 percent and its break-even load factor reached as high as 100 percent. Cebu Pacific reported a net loss, with fuel costs more than doubling and the peso weakening by around 8 percent. Analysts say lower oil prices could help reduce costs, but also risk triggering a price war, while strained household purchasing power may weigh on travel demand for the rest of the year.
Asia Aviation Public Company LimitedFuel costs more than doubled and peso weakened, causing net loss.
Operating loss nearly doubled due to higher cost per passenger and high break-even load factor.
