🛢️Jet fuel prices at KLIA nearly doubled in two weeks
A commercial aircraft being refueled on the tarmac — a process that now costs Malaysian airlines nearly double what it did two weeks ago.
Your next flight just got more expensive:
Something quietly happened at KLIA that most passengers haven't noticed yet — but they will the moment they search for their next flight.
Jet fuel prices surged from RM2.33 per litre to RM4.23 per litre in under two weeks — a rise of nearly 83%. That isn't a rounding error. That is an almost doubling of one of the single largest costs in running an airline, compressed into days. The cause traces back to escalating military conflict in the Middle East, which has disrupted global oil supply chains and sent crude prices sharply higher.
Jet fuel, which was hovering between US$85 and US$90 per barrel before the conflict, has now climbed above US$100 per barrel — and some projections suggest it could go further. An aviation economist from Universiti Kuala Lumpur's Malaysian Institute of Aviation Technology warned that oil prices could potentially reach US$150 per barrel if disruptions at the Strait of Hormuz persist into April 2026.
Airlines are not waiting to find out. They are acting now.
What the Malaysian carriers are doing
Malaysia Airlines, Firefly, and Batik Air all issued notices announcing phased fuel surcharge increases. The new charges include:
RM50 for domestic flights
RM80 for Malaysia–ASEAN destinations
RM100 for Malaysia–Australia routes
RM80 for flights to the Middle East, South Asia, and Central Asia
A second wave of surcharges took effect on March 25, covering Japan, South Korea, Taiwan, Hong Kong, and the Philippines. If you haven't checked your upcoming flight costs recently, now is the time.
AirAsia X confirmed it has adjusted fares and fuel surcharges across its network, with Deputy Group CEO Farouk Kamal describing the measure as temporary while the airline monitors how market conditions evolve.
Why this hits budget airlines hardest
Full-service carriers like Malaysia Airlines have more tools to manage a fuel shock. They hedge — meaning they lock in fuel prices months in advance through financial contracts, softening the blow of sudden spikes.
Budget carriers have less of that cushion. Aviation fuel currently accounts for up to 40% of an airline's operating expenses at current price levels. For a low-cost carrier whose entire business model is built on razor-thin margins and cheap fares, absorbing that increase is simply not possible. It gets passed to you.
AirAsia entered 2026 expecting to consolidate its post-pandemic rebound with aggressive capacity growth and new cross-border routes. Instead, management is now weighing how much of the fuel cost increase can be passed to its price-sensitive customer base without destroying demand.
The bigger picture for SEA aviation
This isn't just a fare story. It is a signal about how exposed Southeast Asia's aviation industry is to events it cannot control. Vietnam Airlines has reportedly urged local authorities to remove the environmental tax on jet fuel, as operating costs have risen by 60 to 70% due to surging fuel prices. Carriers across the region are making the same calculations — cut routes, raise fares, or both.
Industry analysts warn that overall ticket prices could rise by 5 to 10% or more before conditions stabilize.
✏️ SEAviator Take
The surcharge wave has already started. If you have flights booked, your existing tickets are protected — surcharges apply to new bookings only. But if you're planning to fly anywhere in the next three months, book before April. The second surcharge wave is live, and a third revision is entirely possible if oil stays above US$100. The cheapest flight you can book right now is still cheaper than the one you'll find next week.
If you have flights to book, do it now — surcharges on new tickets are only going one direction.
That's your SEA aviation briefing for this week. If you found this useful, forward it to a friend who has flights coming up — they'll thank you for it.
— Johnathan SEAviator
Know someone planning a trip soon? Forward them this issue — it could save them money.