AirAsia Baggage Pricing Hiked During Oil Price Slump

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This will surely drive up the value of AirAsia’s shares. Even though oil prices have hit new lows, AirAsia today announced that they will be jacking up their baggage pricing. This will mean greater profits for AirAsia, and higher costs for those who do not prebook their checked baggages.

AirAsia Baggage Pricing Hiked During Oil Price Slump


The New AirAsia Baggage Pricing Structure

Effective on the 26th of January 2016, the AirAsia baggage pricing structure will be split into two categories – During Initial Booking and Via Manage My Booking.

Your checked luggage fees will be the lowest if you add them to your flight ticket during the initial booking. If you add them after the initial booking (using the Manage My Booking feature), you will be charged about 15% more. Take a look at these examples :

Kuala Lumpur to Melbourne

AirAsia Baggage Pricing Hiked - KL to Melbourne

Kuala Lumpur to Macau

AirAsia Baggage Pricing Hiked - KL to Macau

However, the check-in fees for sports equipment are not affected. For some reason, flights originating from Indonesia will not be affected as well.


New AirAsia Baggage Pricing Announcement

This is the announcement that AirAsia sent out by email today :

We would like to inform you, our valued guest, that we will be revising our baggage pricing.

With the new pricing structure, booking your checked baggage at the time of your flight booking will guarantee you the greatest savings.

You will still be able to pre-book your baggage via Manage My Booking later. However, it will be at a higher price.

Rest assured that pre-booking checked baggage online, be it at the time of your flight booking or later via Manage My Booking, you will still enjoy more savings as compared to purchasing last minute at the airport counter. Because of this, we highly encourage you to pre-book your baggage.

And this is their announcement on their website today :

With the new baggage pricing structure, pre-booking checked baggage via Manage My Booking will be subjected to an additional charge on top of the current price.

Bookings made for flights originating from Indonesia will not be affected.

How do I still enjoy savings with the new pricing structure?

You can still enjoy savings as long as you pre-book checked baggage allowance when you book your flights.

In the meantime, global oil prices recently plummeted to less than US$30 per barrel, and was forecasted by the US Energy Information Administration to average US$40 per barrel in 2016 and creep up to US$50 per barrel in 2017.

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