Jakarta. AirAsia Indonesia posted lower revenue in the first half of 2026 as soaring global jet fuel prices and a weaker rupiah drove up operating costs, though the budget carrier managed to narrow its operating loss through tighter cost controls and a shift toward more profitable routes.

The airline booked revenue of Rp 3.91 trillion ($216.42 million) in the January–June period, down 1.8% from Rp 3.98 trillion a year earlier, according to its financial report. President Director Achmad Sadikin Abdurachman said the decline reflected the company's deliberate strategy of prioritizing higher-yield routes over passenger volume.

The airline faced mounting cost pressures as global jet fuel prices surged 46.7% year-on-year while the rupiah weakened 5% against the US dollar during the period. As a result, fuel expenses rose 26.1% to Rp 1.99 trillion.

Ticket sales remained AirAsia Indonesia's largest revenue source at Rp 3.31 trillion, while ancillary revenue reached Rp 595 billion, supported by baggage fees, in-flight meals, charter services, and air cargo.

To improve profitability, the airline reduced flight capacity by 4.2% to 3.44 million seats through network optimization and fleet reallocation.

To offset higher fuel costs, AirAsia Indonesia raised its average ticket price by 4.9% to Rp 1.13 million, lifting revenue per available seat kilometer (RASK) by 17.4% to Rp 854.

Despite the capacity adjustments and fare increases, passenger demand remained resilient. The airline carried 2.83 million passengers across 19,125 flights during the first half, maintaining a load factor of 82%.

"The first half of 2026 tested the resilience of the global aviation industry amid surging operating costs. Rather than pursuing inefficient passenger volume, Indonesia AirAsia moved quickly to optimize capacity, discontinue less profitable routes, and adjust fares while maintaining an 82% load factor," Achmad said.

Although the airline remained in the red, its operating loss narrowed 6.9% to Rp 678.4 billion.

The improvement was supported by tighter cost management, including a 1.2% reduction in cost per available seat kilometer excluding fuel (CASK ex-fuel).

"Our focus on internal cost efficiency, particularly by cutting non-essential marketing spending and optimizing aircraft maintenance schedules, reduced operating expenses by 2.2% while lowering our core operating loss by 6.9%," Achmad said.

For the second half of 2026, AirAsia Indonesia plans to further optimize profitable routes, improve aircraft utilization, and strengthen operational efficiency.

The strategy will also be supported by greater integration with the AirAsia Group network through its Fly-Thru service, allowing passengers to connect to more than 150 destinations across the Asia-Pacific region.

"Going forward, we will continue to monitor market developments while maintaining operational flexibility and disciplined cost management. These measured steps are key to ensuring the company's long-term sustainability while continuing to provide quality and affordable air travel," Achmad said.

Earlier this year, AirAsia Indonesia streamlined its route network by suspending its daily Jakarta–Singapore service effective July 1. The airline also discontinued its Melbourne–Denpasar and Adelaide–Denpasar routes from June 19, citing soaring jet fuel prices and challenging operating conditions.