KUALA LUMPUR: Capital A Bhd chief executive officer Tan Sri Tony Fernandes has said that its airlines will charge a sustainability fee "soon", exclusively for carbon offset projects.

"We are also incorporating a sustainability fee in our airfares soon, exclusively for carbon offset projects, prioritising investments in our region through initiatives like Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) for a globally balanced approach," its CEO, Tan Sri Tony Fernandes said in his inaugural letter to shareholders.

Fernandes who has been AirAsia's CEO for 23 years, has just signed another five year contract.

The letter to shareholders was filed with Bursa Malaysia Securities Bhd.

No additional details on the fee was provided.

This additional fee will join the list of charges imposed by AirAsia and AirAsia X, which include booking service fees, refund fee, counter check in fee, infant fees and fuel surcharge.

"Our approach to sustainability is threefold: maintaining profitability, managing tourism to preserve destinations, and targeting carbon neutrality by 2050 via carbon credits, technology, and fuel efficiency."In 2022, our eco-friendly operations significantly lowered CO2 emissions, equivalent to the effect of around 900,000 urban trees," he added.

Fernandes emphasised that environmental, social, and governance (ESG) factors are becoming essential for ethical business practices, and that it is imperative for all stakeholders, including the government, to fulfil their roles in this regard.

On the subject of sustainable aviation fuel (SAF), Fernandes said while they support SAF, it must be economically viable and not burdensome to its passengers.

He reiterated his call for improving air traffic management instead to promote fuel efficiency.

"Flying aircraft in a holding pattern while awaiting permission to land is extremely fuel-inefficient - there are significant fuel & emission savings to be gained here. Tokenism will not move the needle," Fernandes said.