Australians who have booked flights to Europe with AirAsia after March will be affected by the airline's decision to suspend its long-haul unit.

The Asian budget carrier AirAsia said Thursday it would suspend services to Paris and London and cut India flights in a bid to rein in costs.

The Malaysia-based airline cited global economic uncertainty, soaring taxes and higher jet fuel prices for the move, adding it would redeploy its fleet to profitable Asian and Australian routes.

The airline, a unit of AirAsia, will cease services to Mumbai and Delhi from January 31 and March 22, respectively while routes to London and Paris will end on March 30 and March 31 respectively.

The London route was launched in 2009, Mumbai and Delhi in 2010 and Paris in 2011. London and Paris were the only European routes the airline services.

AirAsia X's successful sister airline AirAsia handles regional Asian routes under four hours' flight time.

AirAsia X chief executive Azran Osman-Rani said the changes would boost the carrier's bottom line, refocusing its network "on markets where it can build a leadership position in 2012."

"We intend to concentrate capacity in our core markets of Australasia, China, Taiwan, Japan, and Korea where we have built up stable, profitable routes within an infrastructure that supports low cost services," he said.

Azran blamed high jet fuel costs and weak passenger demand from Europe as among a host of factors compromising its efforts to offer low fares to the continent.

He blamed the weakened demand on "the current economic situation together with exorbitant government taxes."

"The implementation of the emissions trading scheme and the escalating air passenger duty taxes in UK, which will rise yet again in April 2012, forced our decision to withdraw our services to Europe," he added.

Azran said the Delhi and Mumbai routes were cut because of rising "airport and handling charges" and visa restrictions hampering travel between India and Malaysia.

AirAsia X was launched in 2007. Richard Branson's Virgin Group has a 20 percent stake in the airline.

Last month flag carrier Malaysia Airlines said it would cut routes in Asia and axe flights to some global destinations such as to Rome and Johannesburg as it tries to return to profit.