AirAsia has announced the cancellation of flights from two Australian cities to Bali due to the ongoing global jet fuel crisis. The popular budget carrier stated on Friday that services from Melbourne and Adelaide to Denpasar would be suspended starting June 18, citing soaring jet fuel costs.
Reasons for Suspension
Indonesia AirAsia General Manager Achmad Sadikin Abdurachman explained: 'This decision has been made in response to the sustained increase in global jet fuel prices caused by the ongoing geopolitical uncertainty in the Middle East. This operating environment has led to the need to refocus our network on routes that remain operationally viable at this time.'
AirAsia apologised for the disruption to travel plans and assured affected ticket holders they would be rebooked on earlier flights via Kuala Lumpur. The airline did not specify whether the suspensions are temporary or permanent.
Impact on Australian Travellers
The move is a significant blow to travellers from Melbourne and Adelaide, given Bali's immense popularity. Between 1.5 and 1.7 million Australians visit Bali annually, making Indonesia the top overseas destination for Aussie travellers.
Crude oil prices surged dramatically in the first half of 2026, driven primarily by the conflict in Iran and subsequent disruptions to tanker traffic in the Strait of Hormuz. In late March, crude oil prices approached $120 per barrel after strikes on Iranian energy infrastructure and the effective closure of the Strait. This represents a 70 per cent surge compared to late 2025, and the cost of filling an aircraft with jet fuel has more than doubled since February.
Previous Route Changes
AirAsia had previously increased the Adelaide to Bali route from four flights per week to seven, with projections of up to ten flights weekly during peak periods. However, in late April, the airline withdrew from Darwin, suspending both its Bali and Kuala Lumpur routes after less than a year in the market due to insufficient bookings.
AirAsia joins other airlines, such as Air New Zealand, which is set to report full-year losses of up to $319 million, in being heavily impacted by the global oil shock. The Daily Mail contacted AirAsia for further comment.
