AirAsia X, the budget airline, has announced significant fare increases of 31% to 40% and a 20% rise in fuel surcharges due to escalating oil prices resulting from the ongoing conflict between the US and Iran. The airline's co-founder, Tony Fernandes, confirmed that despite the challenges, demand for flights remains high. The airline plans to cut certain routes that are no longer financially viable due to the soaring costs of jet fuel, which has risen to as much as $300 per barrel in some markets. AirAsia X is still committed to launching its new hub in Bahrain, with the first flight scheduled for June 26. The situation has also led to other airlines, like Lufthansa and IndiGo, adjusting their operations and introducing fuel surcharges to offset rising costs. Lufthansa has warned of potential fuel shortages if the conflict continues, while Indian airlines have also raised prices for domestic flights following a 25% increase in Aviation Turbine Fuel (ATF) prices.