This low-cost airline has reduced fares by 5%

This low-cost airline has reduced fares by 5%

Malaysian budget airline, AirAsia X, has announced a 5% fare reduction.

The company's CEO Bo Lingam said this is part of their strategy to review pricing weekly and increase capacity as jet fuel prices fall.

This comes after the US-Iran peace deal eased tensions in the Middle East and brought relief to the aviation industry with declining fuel costs.

Lingam's comments on rising fuel prices impact

Lingam noted that the aviation industry has been greatly impacted by rising fuel prices.

He expressed hope that the current situation in the Middle East remains stable, as it has already resulted in a spike in bookings over the weekend.

Singapore jet fuel was trading at around $112 per barrel on Friday, down from its March high of $242 but still higher than pre-conflict levels of about $80 per barrel.