Are the glory days of cheap flights in Asia over?

The era of ultra-low-cost air travel in Asia is fading as rising jet fuel prices and structural economic shifts force airlines to increase fares. Unlike legacy carriers, budget airlines face heightened vulnerability because fuel costs constitute a larger share of their total expenses, and they lack the financial flexibility to hedge against price volatility. While regional demand persists, the combination of currency depreciation against the US dollar and increased operational costs makes a return to pre-pandemic pricing unsustainable. Smaller, less-capitalized carriers face the greatest risk of insolvency, though major players may secure government support due to their critical role in regional economies. Ultimately, the industry is transitioning toward a new normal where base fares no longer reflect the true cost of operations, signaling an end to the era of extreme budget travel.