AirAsia continues network recalibration and optimises presence on key Australian routes
SYDNEY, 20 August 2026 - AirAsia Group has today announced changes to its global network as it continues its recalibration activities to optimise efficiency and maintain a commercially viable operation.
As a Group, AirAsia is repositioning its presence in Australia, strengthening its network with planned frequency increases across its Perth–Denpasar, Perth-Kuala Lumpur and Melbourne-Kuala Lumpur services. From December 2026, Perth–Denpasar services will increase to 35 flights per week, while the strong performance of Melbourne–Kuala Lumpur will see the route return to daily services. Perth–Kuala Lumpur has also experienced significant growth, with frequencies set to steadily increase to 14 flights per week. As part of this ongoing network optimisation, the airline has made the difficult decision to suspend its Sydney-Kuala Lumpur route, operated by AirAsia X (IATA code D7).
The decision reflects a combination of increased cost pressures, softer demand and the need to strategically align the airline’s network and fleet. As part of a broader strategy across the AirAsia Group, the airline is fast-tracking its long-term aircraft strategy and accelerating the return of older, less fuel-efficient widebody aircraft, including those used on this route. The suspension of the Sydney service will enable AirAsia to focus its available fleet and resources on destinations where it can operate sustainably and efficiently, while ensuring its network and market demand align.
Benyamin Ismail, General Manager of AirAsia X said the decision was not made lightly, and acknowledged the Sydney-Kuala Lumpur route is key to supporting Fly-Thru and serves customers who travel to visit friends and family across ASEAN.
“This has been an incredibly difficult decision, and one that has not been taken lightly. Sydney, which was launched back in 2012, has played an important role in our history and in connecting Australians with Malaysia and the wider region.
“The current operating environment requires us to make some tough choices. By accelerating the retirement of older, less fuel-efficient widebody aircraft and adjusting our network, we are taking the necessary steps to build a more resilient and commercially sustainable operation for the future.”
“We understand how disappointing this will be for our guests, particularly those who have travelled with us over many years, and we sincerely thank them for their understanding and support. Australia remains a critically important market for AirAsia. We are increasing our presence in other Australian ports where demand is strong, and we will continue to identify opportunities to keep strengthening our connectivity across the country, when conditions allow.”
The airline's teams are contacting affected customers from today, offering refunds which will be completed within 14 days^, a Credit Account or date changes. Date changes can be actioned quickly and efficiently using the AirAsia MOVE chat bot, Bo, or guests can monitor their refund progress through the AirAsia MOVE app or website once they receive a case number.
AirAsia acknowledges and thanks Sydney Airport for their support over the past 14 years. This decision was reached in a spirit of transparency and mutual respect, and AirAsia remains open to returning to Sydney should market conditions change, and aircraft strategy allows.