Fixed-wing Unmanned Aerial Vehicles (UAVs) cannot fly at speeds lower than critical stall speeds. As a result, hovering during a potential collision scenario, like with rotary-wing UAVs, is impossible. Moreover, hovering is not an optimal solution for Collision Avoidance (CA), as it increases mission time and is innately fuel-inefficient. This work proposes a decentralized Fuzzy Inference System (FIS)-based resolution algorithm that modulates the point-to-point mission path while ensuring the continuous motion of UAVs during CA. A simplified kinematic guidance model with coordinated turn conditions is considered to control the UAVs. The model employs a proportional-derivative control of commanded airspeed, bank angle, and flight path angle. The commands are derived from the desired path, characterized by airspeed, heading, and altitude. The desired path is, in turn, obtained using look-ahead points generated for the target point. The FIS aims to mimic human behavior during collision scenarios, generating modulation parameters for the desired path to achieve CA. Notably, it is also scalable, which makes it easy to adjust the algorithm parameters, as per the required missions, and factors specific to a given UAV. A genetic algorithm was used to optimize FIS parameters so that the distance traveled during the mission was minimized despite path modulation. The proposed algorithm was optimized using a pairwise conflict scenario. The effectiveness of the algorithm was evaluated through a Monte Carlo simulation of random conflict scenarios involving multiple UAVs operating in a confined space.