Friday, May 16, 2008

Lower fuel surcharge boosts AirAsia's sales


Kuala Lumpur: Local budget airline AirAsia saw an improvement in sales after reducing its fuel surcharge, chief executive officer Datuk Tony Fernandes said Thursday.

He added that the carrier also does not plan to increase its fuel surcharge any time soon even though crude oil prices rose to US$125 a barrel Thursday.

"We have to compete (with regards to fuel surcharge) and in fact, the sales volume has gone up. So the drop in fuel surcharge was compensated by an increase in sales," he said.

"We have no intention of raising our fuel surcharge," he told reporters here after launching AirAsia X's service to Perth, Western Australia.

According to a company official, AirAsia's fuel surcharge is 40 percent cheaper than that of a full-fledged airline.

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