AirAsia X co-founder Tony Fernandes is launching a new airline, betting on future growth in the aviation sector despite current high oil prices.

AirAsia X co-founder Tony Fernandes said he is preparing to launch a new airline, betting that expanding while the aviation industry’s being roiled by high oil prices will pay off in the future. The new airline will be announced in the next month or two, Fernandes said in a video interview from Montreal late on Wednesday. The low-cost Southeast Asian carrier group is moving some planes for the business it is starting, he said, without providing further details. The expansion would come on the...