State-backed South-east Asia budget carriers handle elevated fuel prices better - The Business Times

[SINGAPORE] Budget airlines in the South-east Asia region could see a divided outlook amid elevated fuel prices caused by the US-Iran war, an aviation consultant said.

AirAsia, Lion Air and other airlines with no or limited access to support from a group or government are likely to have greater direct exposure to increased fuel costs than their counterparts, such as Garuda Indonesia’s Citilink and Singapore Airlines’ (SIA) Scoot, that enjoy some protection within larger groups.

Deirdre Fulton, partner at consultancy firm Midas Aviation, wrote in a blog on Oct 28 (Wednesday) that low-cost carriers (LCCs) in the region cut capacity by 1.3 per cent year on year in 2026 whereas full-service carriers increased theirs by 4.9 per cent as higher fuel prices bite.