KUALA LUMPUR: Low-cost carrier AirAsia Bhd is abolishing its fuel surcharge effective today across all of its airlines in the group, as well as its low-cost, long-haul affiliates AirAsia X, Thai AirAsia X and Indonesia AirAsia X.

In a statement yesterday, the carrier said the move is in line with declining global oil prices.

AirAsia in 2008 abolished the fuel surcharge for all its domestic and international flights, but was forced to reintroduce it in 2011 as fuel prices shot up.

AirAsia group chief executive officer Tan Sri Tony Fernandes said the decision to abolish the surcharge was made in November 2014.

“However, we are only able to implement it now, but we believe removing fuel surcharge and reducing travel costs will be a huge boost to the tourism industry. This will be a plus point for consumers, but the economy will also benefit from this.” Fernandes said with the removal of the surcharge, passengers would be able to find all inclusive, one-way domestic flights from as low as RM19, and international flights from RM49.

This article first appeared in The Edge Financial Daily, on January 27, 2015.