New Delhi, April 6 -- Budget carrier AirAsia X on Monday said it was going to increase its fares as oil prices surged due to the US-Iran war in the Middle East and its consequences.

The airline further said that it will need to cut some flights in routes it can no longer cover the fuel costs.

The company has raised fuel surcharges by about 20%, while fare prices have increased between 31% and 40%, it said.

AirAsia X co-founder Tony Fernandes said in a press conference that demand for flights remained high and the airline was still committed to a planned hub in Bahrain, with its first flight scheduled for 26 June.

AirAsia X in February unveiled plans to resume flights from Kuala Lumpur to London via the Bahrain hub, its first outside A...