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1 comment(s). Last comment by Jonathan Keung 2016-03-24 16:37

Posted by Jonathan Keung > 2016-03-24 16:37 | Report Abuse

AA has hedge their Jet fuel at US 59 per barrel. currently Brent Crude is trading at >US 40 per barrel. Fuel cost shud be low compared on a Y-o-Y basis. Previously AA hedge at US 90- 70 per barrel. Jet fuel accounts for at least 40% of their operating costs.

Currency wise the Ringgit and other regional curriencies has firm up against the US dollar. The ringgit was battered from 3.6 and fell to 4.4 as of last year. currently the ringgit trading at 4.0 mark.

the recovery against the US dollar also strech right across the board for most Asian Airlines after the US Fed. Reserve signals a 2 right hikes for this year compare to 4 rate hikes as of December last year.


China and India growing middle class and the X & Y generations is flying right across the globe compared to 10 or 15 years back. this segment of consumers are the biggest block of LCC customers.

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