Malaysia Airlines lifts average fares 20-30 per cent as fuel costs rise
MAG chief says the increases do not fully cover higher fuel costs, while the group’s growth programme remains on track.
Malaysia Airlines has raised average fares by 20-30 per cent to offset higher jet fuel costs, according to Malaysia Aviation Group (MAG) president and group chief executive officer Captain Nasaruddin A. Bakar. He said fuel prices were about 90 per cent above levels before the Middle East conflict.
Speaking in Kuala Lumpur during the Association of Asia Pacific Airlines’ (AAPA) 70th Assembly of Presidents, Nasaruddin said the increases, applied through fares or fuel surcharges, were insufficient to recover the extra costs fully.
Citing AAPA figures, he said Asia Pacific airlines’ profit margins had more than halved. Margins typically stood at around two to three per cent but had slipped below one per cent in 2026 because of higher fuel prices.
Nasaruddin said fuel prices were expected to stay elevated in 2027. Malaysia Airlines would keep using dynamic pricing to adjust fares according to supply and demand, while carefully managing capacity to support profitable routes. As the national carrier, it also needed to preserve domestic and international connections, including services on which it must absorb higher fuel costs.
Despite pressure on MAG’s finances, he said its Long-Term Business Plan 3.0 remained on schedule through 2030, including aircraft orders and further planned announcements. The group targets revenue of RM24.6 billion by 2030, against RM13.8 billion in 2024, and aims for Malaysia Airlines to reach Skytrax’s global top 10.
He said MAG would disclose its long-range wide-body aircraft replacement plans within a month.
MAG reported RM14.5 billion in revenue for its financial year ending December 31, 2025, a six per cent increase from RM13.8 billion in 2024. Net profit rose to RM137 million from RM54 million, more than doubling.
