Malaysia-based airline AirAsia will introduce a mandatory carbon fee for all passengers starting January 1, 2025, as part of efforts to enhance accountability and transparency in the aviation industry. Transport Minister Anthony Loke announced this development in response to inquiries about recent amendments to the Malaysian Aviation Consumer Protection Code 2016 and the status of carbon fee collections initiated earlier this year.

The Malaysian Aviation Consumer Protection Code (Amendment) 2024, which was gazetted on August 30 and took effect on September 1, includes key provisions aimed at increasing transparency for airlines. Under the new regulations, airlines must now display all-inclusive ticket prices in advertisements, ensuring that any carbon fees or additional charges are clearly incorporated and disclosed before customers complete their purchases. Additionally, airlines are required to refund fuel surcharges, taxes, fees, and government-imposed charges, including carbon fees, when applicable.

To ensure compliance, the Malaysian Aviation Commission (MAVCOM) will mandate that airlines submit detailed reports on the collection and usage of carbon fees. While Malaysia Airlines has been operating a voluntary carbon fee program since June 2023, AirAsia's move to make the carbon fee mandatory represents a significant step forward in Malaysia's strategy to reduce carbon emissions in the aviation sector.

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