AirAsia X pushes forward with Bahrain hub launch despite Middle East tensions. The budget carrier plans to open its first hub outside Asia in June, connecting Kuala Lumpur to London. However, escalating regional conflict and soaring jet fuel costs pose significant challenges. CEO Bo Lingam confirmed the June 26 launch date only if the conflict ends before then. The airline has already raised fuel surcharges by 20% and increased fares between 31% to 40% to offset rising operational expenses. Jet fuel prices have surged to $300 per barrel in some markets, forcing the carrier to trim capacity and adjust routes where profitability is threatened. Despite headwinds, co-founder Tony Fernandes remains optimistic about long-term recovery, noting that demand for flights remains strong.
