AirAsia Group CEO Tony Fernandes said his airline is prepared for an inevitable slowdown in the aviation market, as trade tensions, rising fuel prices and volatile currencies create headwinds for the sector.
"Definitely, there is going to be some slowdown in my opinion," Fernandes told CNBC's Oriel Morrison on Friday.
"It's inevitable with trade sanctions and some of the things that are happening in the currency world in emerging markets," he added.
The outspoken aviation boss said his airline hasn't seen an impact yet, but the business is ready to weather any potential storm, as geopolitical developments — particularly the U.S.-China trade war — could impact confidence and aviation spending.
"We've been through a few of these cycles. Don't forget oil was $130 at one stage. Generally, we're a little bit inelastic in demand when it comes to recessions because people will trade down to a low-cost carrier from a premium airline if things slow down," he added.
"We're up for it, we're looking forward to 2018 and it's a good opportunity to refocus, re-look at things, cut some cost and build some market share."