HONG KONG, June 22 (Reuters) - Malaysian budget carrier AirAsia X has lowered fares by 5% since June 15 and the airline is reviewing the situation week by week as jet fuel prices drop, the company's CEO, Bo Lingam, said on Monday.
The airline used the past three months to cut underperforming flights, shift demand and renegotiate contracts with all vendors and lessors, Lingam said, as the U.S.-Iran war wreaked havoc with travel worldwide.
"We went back and see how we can restructure and renegotiate all our contracts, which is still ongoing," Lingam told reporters.
"Week by week, as fuel prices go down, we will also be revising our fares," he added.
AirAsia X has been hard hit by volatile jet fuel prices, posting a first-quarter loss this year as it cut 10% of flights and added fuel surcharges to deal with rising costs.
The airline said in a statement on Monday it expected its capacity to be fully restored by August.
Singapore jet fuel traded at about $112 a barrel on Friday after recent declines due to an interim U.S-Iran peace deal. That was higher than the pre-conflict price of around $80 a barrel but less than half of the March 30 high of $242.
Lingam also said the airline expected to receive its first Airbus A220 jets by the end of 2027, which would be deployed in the Philippines.
(Reporting by Julie Zhu; Editing by Anne Marie Roantree, Christian Schmollinger and Jamie Freed)
