Stay up to date with the latest in the travel and hospitality industry, from airline launches and route expansions to new trends and transportation developments shaping the way we explore the world.
This is the March 2026 edition of Airline and Travel News.
LUFTHANSA AIRLINES TO LAUNCH NONSTOP KUALA LUMPUR–FRANKFURT SERVICE
Lufthansa Airlines (LH) will begin nonstop flights between Kuala Lumpur International Airport (KUL) and Frankfurt Airport (FRA) on October 25, 2026, operating five times weekly, excluding Tuesdays and Thursdays. The service will use the Boeing 787 Dreamliner, featuring the airline’s new Allegris cabin with 287 seats across First, Business, Premium Economy, and Economy classes. Flight LH704 departs Frankfurt at 9:30 PM, arriving in Kuala Lumpur at 4:40 PM the next day, while LH705 leaves Kuala Lumpur at 11:55 PM, landing in Frankfurt at 6:00 AM.
The schedule is designed to integrate seamlessly with Lufthansa’s global network at Frankfurt, offering onward connections across Europe, North America, and other long-haul destinations. The Dreamliner is among the airline’s most fuel-efficient aircraft, with redesigned seats and updated cabin interiors aimed at enhancing passenger comfort. CEO Jens Ritter said the new route reflects Lufthansa’s commitment to growing its presence in fast-expanding Asian markets while providing a premium long-haul experience.
Malaysia continues to attract strong tourism and business demand. The country welcomed 42.2 million visitors in 2025, making it Southeast Asia’s most visited nation. Kuala Lumpur remains the main international gateway and a regional business hub, supported by growing trade ties with Germany. Over 700 German companies operate in Malaysia, underscoring robust commercial links.
With Kuala Lumpur joining Bangkok, Singapore, and Phuket on its Southeast Asia network, Lufthansa anticipates strong long-term demand from both leisure and business travellers. Bookings for the new route are now open, positioning the airline to meet rising demand while strengthening its footprint across the region.
To learn more, visit lufthansa.com.
OAKWOOD CAMERON HIGHLANDS OPENS HILLTOP RETREAT OVERLOOKING GOLF COURSE
A new serviced residence has opened in Malaysia’s Cameron Highlands, adding fresh accommodation options to one of the country’s most popular cool-climate destinations.
Perched on a hilltop in Tanah Rata and overlooking the Sultan Ahmad Shah Golf Club, Oakwood Cameron Highlands marks the second Malaysian property for the Oakwood brand, managed by The Ascott Limited. The 383-key development is owned by the Armani Group and strengthens the brand’s presence in Malaysia’s highland leisure market.
The property offers a mix of accommodation ranging from compact deluxe rooms to larger two-bedroom family suites designed for extended stays. Many of the residences include fully equipped kitchens, washing machines, dryers, and generous living spaces that allow guests to settle in more comfortably than in a typical hotel room.
Interior design draws inspiration from the highlands’ agricultural heritage and colonial-era influences. The property’s design theme, described as “Whispers of the Highlands,” uses muted tones, warm textures, and expansive windows that frame the surrounding landscape and golf course views.
Dining options include Oakbistro, an all-day restaurant serving casual fare suited to family gatherings and post-golf meals, while Oaklounge provides a relaxed space for afternoon tea, drinks, and small social occasions overlooking the fairways.
“The opening of Oakwood Cameron Highlands represents a strategic expansion of the Oakwood brand in Malaysia,” said Mondi Mecja, Ascott’s Country General Manager for Malaysia. “Its elevated golf-front setting allows us to deliver a differentiated stay that blends scenic escape with modern residential comfort.”
The property also features a gymnasium, 24-hour reception, housekeeping services, complimentary WiFi, and shared laundry facilities for guests.
For information and booking, visit discoverasr.com.
WILL AIRFARES IN SOUTHEAST ASIA RISE AS A RESULT OF THE MIDDLE EAST CONFLICT?
Travellers across Southeast Asia may soon feel the ripple effects of the escalating conflict in the Middle East – not necessarily through flight cancellations, but through higher airfares.
The most immediate pressure comes from fuel. Jet fuel prices, which were hovering around US$85–US$90 per barrel before the conflict intensified, have surged dramatically in recent weeks, in some cases reaching between US$150 and US$200 per barrel. For airlines, fuel is typically the single largest operating expense (although in some markets, labour costs may edge it out), meaning sharp increases can quickly translate into higher ticket prices.
The conflict has also disrupted key airspace corridors linking Asia and Europe. Airlines are increasingly rerouting flights to avoid parts of the Middle East, which often results in longer flight paths and higher fuel consumption. These operational changes are already pushing up costs and tightening capacity on certain routes.
For Southeast Asian carriers – including airlines serving Malaysia – the impact is most visible on long-haul routes, particularly flights between Asia and Europe. Industry reports suggest that fares on some of these routes have already begun climbing due to both fuel costs and limited available airspace.
Several international airlines have already announced fare increases or higher fuel surcharges in response to the situation. Others say they are reviewing pricing as uncertainty over fuel supply and airspace disruptions continues.
For now, regional routes within Southeast Asia may see less dramatic changes. However, if fuel prices remain elevated or the conflict expands, analysts say airlines across the region may have little choice but to gradually pass some of those additional costs on to passengers.
In short, travellers may not see an immediate spike across every route – but analysts have warned that the broader direction of airfares, at least in the short term, is likely heading upward.
Sources: Reuters, Channel News Asia, Aerospace Global News, regional airline industry reports.
CLUB MED BORNEO TO OPEN IN SABAH AS BOOKINGS LAUNCH FOR NEW BEACH RESORT
Club Med has announced that reservations for its upcoming Club Med Borneo resort will open on March 24, 2026, ahead of the property’s planned debut in November 2026. Located in Kuala Penyu on Sabah’s west coast, the new development will become the brand’s second resort in Malaysia after the long-established Club Med Cherating.
Set between tropical rainforest and the South China Sea, the resort sits about 90 minutes from Kota Kinabalu International Airport. The 17-hectare beachfront development is positioned as a premium all-inclusive destination combining nature, cultural experiences, and family-friendly amenities.
The property will feature 400 guest rooms, including 39 suites within the resort’s Exclusive Collection category. These higher-tier accommodations form a “resort within a resort” area known as the Mutiara Exclusive Collection space, offering private facilities including a dedicated pool, lounge, and bar.
Facilities across the wider resort include a large infinity pool overlooking the sea, a family splash park, multiple dining venues, and Club Med’s well-known Kids’ Club programmes catering to children from four months to 17 years old. A forest-set spa, meeting facilities for corporate retreats, and a main theatre for nightly entertainment are also planned.
Architecturally, the resort draws inspiration from traditional Rumah Rungus longhouses of northern Borneo, with timber structures designed to blend into the surrounding landscape.
“The opening of Club Med Borneo represents a significant milestone in our global expansion strategy,” said Stéphane Maquaire, President and CEO of Club Med. “This development reflects our commitment to growth in Southeast Asia while balancing premium hospitality with environmental stewardship.”
The project is also targeting BREEAM certification, making it one of the brand’s first large-scale sustainably built beach resorts in Asia Pacific. Sustainability measures include reduced single-use plastics, energy-efficient systems, and programmes supporting local biodiversity and community engagement.
Once open, Club Med Borneo is expected to create more than 350 jobs while introducing a new large-scale resort option in Sabah’s growing tourism sector. The property will be offering complimentary room upgrades, subject to availability, for stays from November 16, 2026 to January 3, 2027. Ring their call centre at +603 2053 1888 for inquiries and reservations.
To learn more, visit clubmed.com.my.
VIETNAM AIRLINES FINALIZES ORDER FOR 50 BOEING 737 MAX AIRPLANES
Boeing and Vietnam Airlines announced today the Vietnamese flag carrier finalized its first Boeing single-aisle order for 50 737 MAX airplanes. The addition of the 737-8 will enable Vietnam Airlines’ domestic and regional route growth plans as air travel demand continues to rise across Southeast Asia.
Vietnam Airlines will gain reliability and capacity by introducing the 737-8, as the country’s air traffic is expected to double to more than 75 million annual passengers over the next 10 years. As the market’s most versatile single-aisle airplane, the 737-8 can carry up to 200 passengers depending on configuration with a range of up to 3,500 nautical miles (6,480 km) for the airline’s short- and medium-haul network expansion.
Vietnam Airlines currently operates 17 787 Dreamliners, serving regional and international routes between Vietnam and Europe. Together, the 737 MAX and 787 deliver 20-25% fuel-use improvement compared to the airplanes they replace, supporting the airline’s network expansion while lowering operating costs.
To learn more, visit vietnamairlines.com.
AIRBORNEO CHOOSES ATR TO UPGRADE RURAL AIR SERVICE FLEET IN EAST MALAYSIA
AirBorneo and ATR recently announced a strategic partnership to modernize Malaysia’s Rural Air Services (RAS) fleet, with AirBorneo confirming a firm order for eight ATR aircraft. The agreement comprises five ATR 72-600s (500 series pictured above) and three ATR 42-600s, with purchase rights for four additional aircraft. Deliveries are scheduled between 2027 and 2029.
This marks a significant milestone in AirBorneo’s transformation into Sarawak’s state-owned airline and its assumption of responsibility for the RAS network, a vital public service that connects remote and underserved communities across Sarawak, Sabah, and Labuan.
Finalized in late 2025, the order supports AirBorneo’s long-term fleet renewal strategy following the acquisition of MASwings by the Sarawak government in 2025 and its subsequent rebranding as AirBorneo. The airline currently operates eight ATR 72-500 aircraft inherited from MASwings. The new-generation ATR –600 series will form the backbone of a more efficient and more resilient RAS operation for East Malaysia.
The introduction of the ATR 42-600 and ATR 72-600 aircraft will enable AirBorneo to enhance passenger experience, operational reliability and service capability. The aircraft feature advanced avionics, modern navigation technologies and improved cabin comfort. They are also equipped to support medical stretcher operations and are optimised for reliable operations across diverse regional and rural route environments in Borneo.
To learn more, visit airborneo.com.
HILTON SHAH ALAM GLENMARIE OPENS WITH MAJOR NEW MEETINGS SPACE NEAR SUBANG AIRPORT
Hilton has expanded its presence in the Klang Valley with the opening of Hilton Shah Alam Glenmarie, a new 261-room property located near Sultan Abdul Aziz Shah Airport (Subang Airport) and overlooking the Glenmarie championship golf courses.
Positioned within the established Glenmarie township, the hotel is aimed at both business and leisure travellers, while also adding significant new meetings and events capacity to the Subang–Shah Alam corridor.
The property features 17 meeting and function spaces covering a total of 2,529 sqm. The largest venue, Cenderawasih, spans 874 sqm and can accommodate up to 650 delegates in a theatre configuration or 500 guests for banquet-style events. The Glenmarie Ballroom also provides large-scale event space, with capacity for 600 guests in theatre setup or around 350 for banquets.
Several mid-sized venues add further flexibility for conferences and corporate functions. Cenderawasih 1 offers 334 sqm of space suitable for up to 300 theatre-style delegates or 200 banquet guests, while the 272 sqm Mauna Lani room can host up to 280 people in theatre configuration or 180 for banquets.
Additional spaces such as Glenmarie Ballroom A and B, each measuring 280 sqm, along with the 249 sqm Cenderawasih 2 hall, provide options for seminars, board meetings, and breakout sessions.
Beyond meetings facilities, Hilton Shah Alam Glenmarie offers an Olympic-sized swimming pool, a fitness centre, and guest access to the nearby Glenmarie Golf and Country Club.
For bookings and more details, visit hilton.com.
