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Malaysia Acts to Stabilize Airlines as Middle East Conflict Drives Fuel Costs Higher

Malaysia rolled out support measures Tuesday to shore up its aviation sector as carriers grapple with soaring operating expenses tied to the Iran conflict. Fuel expenses have spiked dramatically across the industry. U.S. airlines faced jet fuel costs 56.4% higher in March compared to February, according to government data, squeezing margins globally. The regional conflict has affected freight and passenger operations. Some hubs reported operational strain as airlines reassess routing strategies. The fuel surge has also driven inflation pressures in emerging markets as energy costs climbed. Malaysia's support package aims to prevent further airline profitability deterioration while the geopolitical situation remains uncertain. Industry sources indicated carriers are actively exploring alternative hub arrangements to manage costs and operational challenges.