Asia-Pacific carriers have delivered sharply different second-quarter results as a fuel-price spike linked to Middle East conflict hit margins across the region. AirAsia posted a quarterly loss and moved to trim third-quarter capacity by 20% to 25%, while peers including Singapore Airlines, Cathay Pacific, Qantas, Japan Airlines and Cebu Pacific have reported varying levels of resilience, reflecting differences in hedging, pricing power and balance-sheet strength.
AirAsia’s response was the most immediate. The carrier faced a steep rise in fuel expenses in the April-June period and is returning older aircraft to lessors as it reduces capacity. Fares in May and June climbed by more than 20%, and non-fuel unit costs fell, but the fuel shock still outweighed the benefit from higher pricing. The airline plans to keep capacity lean in the usually weaker third quarter before rebuilding later in the year.
Elsewhere in the region, the same fuel environment produced a mixed picture. Cebu Pacific reported higher revenue and traffic in the first half even as fuel costs surged, underscoring how carriers with stronger demand and different cost structures are weathering the shock in different ways.