KUALA LUMPUR, June 22 -- AirAsia Group has said it will reduce airfares once fuel prices drop and stabilise as tensions begin easing in the Middle East.

AirAsia Group chief executive officer Bo Lingam said the budget carrier lowered its fares by five per cent on June 15, leading to higher bookings over the weekend.

Bo also appeared buoyant about the trend, noting that demand for transfer flights would also rise during the summer holidays, especially once Middle East-based carriers resume operations in full swing.

Bo said AirAsia lost over RM150 million in the first quarter of this year, largely due to the sudden airfare hikes that began on March 4 after the war broke out in the Middle East.

However, he said AirAsia Group clocked a loa...