AirAsia Charging Mandatory Carbon Fees Starting Jan 2025

Beginning January 1, 2025, low-cost airline AirAsia will impose a mandatory carbon fee on all passengers, according to Transport Minister Anthony Loke. The action is consistent with the nation's efforts to combat carbon emissions and represents a major advancement in the aviation sector's accountability and transparency, Loke says.
The CEO of AirAsia Bhd, Tony Fernandes, stated in September of last year that the company is now in the process of obtaining permission from authorities in the nations where it operates, including Thailand, Indonesia, the Philippines, and Cambodia, to impose carbon fees that will be added to ticket prices.
Loke was answering Khairil Nizam Khirudin, the MP for Jerantut, about the latest changes to the Malaysian Aviation Consumer Protection Code 2016 (MACPC) and the state of the carbon fee collections that were implemented earlier this year.

“The Malaysian Aviation Commission (Mavcom) has strengthened the MACPC to provide better protection for consumers. This includes the implementation of carbon levies.

“The Malaysian Aviation Consumer Protection Code (Amendment) 2024 was gazetted on Aug 30, 2024 and came into effect on Sept 1, 2024,” Loke said in his written reply.

He emphasized that all airlines must now include all-inclusive ticket prices in their advertising, which must include any carbon fees or other charges levied against travelers.

He also made the point that before a customer completes their transaction, all airlines are required to reveal the total cost of their tickets, including all fees and charges.