Bursa Malaysia Stock Watch
AIRASIA - Increasing fuel surcharge
kltrader
Publish date: Wed, 28 Mar 2012, 12:45 PM
kltrader
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AirAsia; Fully Valued; RM3.35
Price Target: RM3.10; AIRA MK
AirAsia has adjusted its fuel surcharge effective for bookings made since yesterday amidst persistent high jet fuel prices. It believes that jet fuel prices will remain at current levels for the year, and has taken this measure which is expected to cover US$5/bbl of its fuel costs. In March 2012, jet fuel prices traded at an average of US$136/bbl (YTD: US$132/bbl), which is close to our full-year assumption of US$131/bbl for FY12F.
We believe that the increase in fuel surcharge will increase overall ticket prices, which may affect passenger demand. We remain cautious on the outlook for the aviation industry due to the stubbornly high jet fuel prices. We maintain our Fully Valued call on AirAsia with RM3.10 TP as we continue to foresee a challenging year ahead.
Source: HwangDBS Research - 28 March 2012
Price Target: RM3.10; AIRA MK
AirAsia has adjusted its fuel surcharge effective for bookings made since yesterday amidst persistent high jet fuel prices. It believes that jet fuel prices will remain at current levels for the year, and has taken this measure which is expected to cover US$5/bbl of its fuel costs. In March 2012, jet fuel prices traded at an average of US$136/bbl (YTD: US$132/bbl), which is close to our full-year assumption of US$131/bbl for FY12F.
We believe that the increase in fuel surcharge will increase overall ticket prices, which may affect passenger demand. We remain cautious on the outlook for the aviation industry due to the stubbornly high jet fuel prices. We maintain our Fully Valued call on AirAsia with RM3.10 TP as we continue to foresee a challenging year ahead.
Source: HwangDBS Research - 28 March 2012
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Discussions
Be the first to like this. Showing 7 of 7 comments
This house say like this, that house say like that....one thing for sure about these researchers, they do a good job trying to get us confused.
2012-03-28 16:21
Read what they say and sometimes you wonder if they really think we are that naive to wood-wink us with rehashed old news or by stating the obvious.
2012-03-28 16:53
OSK Research has maintained its "buy" call on AirAsia with an unchanged fair value at RM4.57.
2012-03-28 23:40
See how other ppl said
28/03/2012 TP3.72 BY RHB
28/03/2012 TP4.57 BY OSK
28/03/2012 TP4.06 BY KENANGA
2012-03-28 23:47
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