KOTA KINABALU, MALAYSIA - Low-cost carriers are thriving despite high fuel prices because they adopt innovative approaches and fare structures.

Malaysia Airports Bhd general manager for marketing Sallaudin Mohamad Shah said low cost-carriers had been driving growth at the Kuala Lumpur and Kota Kinabalu international airports over the past two years.

"Low-cost carriers offer fair and innovative pricing that is sustainable. In fact, their growth has been phenomenal," he said after the arrival of the inaugural flight of Philippine-based budget carrier Cebu-Pacific Air from Manila to the state capital on Friday evening.

Cebu-Pacific vice-president for passenger sales Edwin Bautista said: "Now is the time for low-cost carriers. People want to travel, but are budget conscious."

Citing an example, he said the fare between Kota Kinabalu and Manila was RM79, excluding airport tax and fuel surcharges.

He said Cebu-Pacific was already operating services between Manila and Kuala Lumpur, and was keen to fly to Penang, Langkawi and more Malaysian destinations.

Bautista said that although other Philippine-based carriers had tried and failed to make money from flying to Sabah, Cebu-Pacific was confident it could turn a profit by tapping into this sector.

"We are bullish about Kota Kinabalu. To us, Kota Kinabalu is underrated," he said, adding that all the state needed was to promote itself more in the Philippines.

Cebu-Pacific is using the latest Airbus A319 aircraft for the twice-weekly flights. It operates Monday and Friday between Kota Kinabalu and Manila's Ninoy Aquino International Airport.