KUALA LUMPUR (April 21): Malaysia Airlines Bhd's parent company Malaysia Aviation Group (MAG) said on Thursday (April 21, 2022) the Russia-Ukraine conflict has raised challenges in managing MAG's operating cost, which is directly impacted by escalating fuel prices as global crude oil prices exceed US$100 a barrel (bbl).

"Fuel price at current levels of US$110/bbl to US$130/bbl makes up to 40%-45% of the group's (MAG) total operational cost, an increase of about 35%-40% from a year ago.

"All companies within the group have taken immediate steps to manage the impact of higher fuel cost. Safety remains the top priority for the group and measures have been taken to avoid the conflict zone," MAG said in a statement.

It was reported on March 10, 2022 that Malaysia Airlines had announced it would impose a fuel surcharge on passengers and air cargo in selected markets from March 23, 2022 after global fuel prices escalated.

"Following the escalating global fuel price, Malaysia Airlines will be imposing a fuel surcharge for passengers and air cargo in selected markets beginning March 23.

"The airline is proactively managing its capacity to mitigate unprofitable routes due to rising fuel cost," a Malaysia Airlines spokesperson said when contacted by The Edge.

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