AirAsia Indonesia drops key Australian routes

AirAsia Indonesia will cease operating between Denpasar, Bali, and both Melbourne and Adelaide from June 18^th, 2026. The airline has cited spiralling fuel costs as the catalyst for the decision.

General Manager of AirAsia Indonesia, Captain Achmad Sadikin Abdurachman, said: “This decision has been made in response to the sustained increase in global jet fuel prices caused by the ongoing geopolitical uncertainty in the Middle East. This operating environment has led to the need to refocus our network on routes that remain operationally viable at this time.”

Bali is well-served from Australia

Bali is a huge market for Australian holiday makers, and today’s decision will be felt by travellers who look to AirAsia for cheap flights.  For customers in Melbourne, there are still other direct airline options, including Jetstar, Qantas, Virgin Australia, Batik Air and Garuda Indonesia, though none of them are likely to offer the same low price point as AirAsia. For those in Adelaide, there will be no other direct option than that offered by Jetstar.

Options from Melbourne post June 18th

• Jetstar: 23 weekly flights using A321neos

• Qantas: 5 weekly flights using B737-800s

• Virgin Australia: 13 weekly flights using B737 MAX 8s

• Garuda Indonesia: 6 weekly flights using A330-300s

• Batik Air: 4 weekly flights using B737-800s

Options from Adelaide

• Jetstar: 10 weekly flights using A321neos

AirAsia Indonesia is a Five Star Safety Rated airline

AirlineRatings.com rates the Indonesian arm of AirAsia as a Five Star Safety Rated airline.

Whilst the airline has not had a fatal accident in over a decade, has no serious pilot-related incidents, and faces no operating safety concerns, it is not an IOSA-registered airline, which prevents it from receiving the maximum Seven Star or Seven Star PLUS Safety Rating.

According to Planespotters.net, as of May 2026, AirAsia Indonesia has 27 Airbus A320-200s in its fleet, with nine of them currently parked. Overall, the airline has an average fleet age of 15.2 years, slightly higher than the group’s average of 12.8 years.

READ: Garuda Grounds Jets But They Aren’t The Only Ones

What this means for passengers

For Australian travellers, the loss of a dominant low-cost option may push fares higher as the peak season approaches. The five remaining airlines still operate more than 60 weekly services between Denpasar, Melbourne, and Adelaide and AirAsia will continue to serve Perth 14 times per week.

AirAsia Indonesia has not signalled when, or if, it will return after the global fuel crisis settles.

Affected passengers will be offered a full refund or rerouted through Kuala Lumpur.