Kuala lumpur: Malaysia Aviation Group (MAG) anticipates that jet fuel prices will range between US$120 and US$130 per barrel over the next year. This forecast is based on current forward market indicators as airlines continue to manage the repercussions of geopolitical tensions and disruptions in fuel supply impacting the aviation sector.
According to BERNAMA News Agency, MAG President and Group CEO Captain Nasaruddin A. Bakar noted that fuel prices were previously around US$100 per barrel. However, geopolitical tensions have significantly increased prices, with peaks reaching US$240 per barrel, highlighting persistent volatility for airlines worldwide. During an official visit to Wisma Bernama, following his appointment as MAG CEO on February 1, 2026, Nasaruddin expressed confidence in the projected price range for the coming year.
The event was attended by Bernama Chairman Datuk Seri Wong Chun Wai, Deputy Editor-in-Chief (Economic News Services) Harlina Samson, and Assistant News Editor (Economic News Services) Kisho Kumari Sucedaram. Nasaruddin explained that geopolitical tensions, particularly involving Iran, have influenced the aviation sector by driving up fuel costs and causing supply concerns, thus posing operational challenges for airlines globally.
As fuel constitutes about 30% of MAG's total cost structure, the increased prices have added around 20% to airline operating costs. Despite these challenges, Nasaruddin emphasized that MAG is implementing measures to manage these costs without passing them onto passengers at this time.
Beyond cost pressures, Nasaruddin mentioned that changing global aviation dynamics present new opportunities for Southeast Asian carriers. As travel patterns shift due to disruptions in West Asia aviation routes, more travelers from Australia and New Zealand are choosing to transit through Southeast Asian hubs like Kuala Lumpur, Singapore, and Bangkok when flying to Europe.
This trend of avoiding West Asian transit points is creating advantages for Southeast Asian airlines, as more passengers opt for direct routes from cities like Singapore, Kuala Lumpur, and Bangkok to Europe. Nasaruddin highlighted the importance of improving airport infrastructure and facilities in Malaysia to maintain Kuala Lumpur's competitiveness as a regional aviation hub.
He also noted that passenger booking behavior remains largely unchanged, with international travelers booking flights around three months in advance, while domestic travel bookings occur within two to three weeks before departure.
Earlier, Nasaruddin, Wong, and Bernama CEO Datin Paduka Nur-ul Afida Kamaludin participated in a review session for the C-Suite Media Spokesperson Training program at Wisma Bernama. This program, led by Bernama TV's Gerard Vincent Ratnam and Jasminer Kaur Chahal, aimed to enhance the confidence and skills of MAG's senior management in managing media interactions and on-camera appearances.