Analysts Say That Malaysia Airlines And AirAsia May Increase Their Airfares Soon. Here’s Why!

If you’ve been enjoying all the cheap airline promos and free seats promotions, well, those days may soon be numbered.

According to a report by the New Straits Times, Malaysia’s two local airlines may potentially increase their airfares soon, citing analysts.

Why, you wonder? Well, the price increase is due to a surge in oil prices.

Asian transport equity research firm Crucial Perspective chief executive officer Corrine Png told the daily that Malaysia Airlines (MAS) and AirAsia are expected to increase their airfares some time soon.

Jet fuel prices have increased by 33 per cent and failing to increase the price of their flight tickets will result in some substantial losses.

According to Png, both MAS and AirAsia will ideally have to increase their airfares by 10 per cent to cover the costs.

AirAsia told the English daily that they will be “reviewing its airfares based on a number of factors including oil price.” MAS was not available to comment on the issue at the time of publish.