AirBorneo monitoring fuel costs, no fare hike planned for now (Video)

KUCHING (March 16): AirBorneo is monitoring fuel price movements closely but has no plans to increase ticket fares for now despite a slight rise in operating costs, said its chief executive officer Megat Ardian Wira Mohd Aminuddin.

He said the airline has seen a modest increase in expenses due to higher fuel prices, but any fare adjustments would require further discussion with the relevant stakeholders.

“There is a slight increase in our expenses, especially on the fuel costs. But our mission here is actually the social commitment,” he said during AirBorneo’s Iftar gathering with the media on Monday

He said the airline continues to fulfil its obligation to provide air connectivity, particularly under the Rural Air Services (RAS) network, as part of its agreement with the government.

Megat said any consideration of a fuel surcharge or fare adjustment would have to be discussed with stakeholders, including the federal and state governments.

“It’s not like a commercial airline where ticket prices go up in tandem with fuel prices. The ticket price is still the same for now,” he said.

He added that AirBorneo is currently studying fuel procurement strategies and mitigation measures as part of its operational planning, especially ahead of its planned jet operations.

The airline is also monitoring global oil and energy price trends to assess potential cost implications in the future.

“At this point of time, it is still the same fares. A lot of this is still very early days. We don’t know how the fuel price will escalate, so we will continue to monitor the situation,” he said.

He said despite the uncertainties surrounding fuel costs, the airline remains committed to its operational plans and targeted launch timelines.

“Our plan is still ongoing. Whatever it is, we are still targeting the operation launch date. This is for the greater story of Sarawak,” he said.

He added that AirBorneo operates under a different business model focused on improving connectivity across the region.