The crack spread of aviation fuel a few days ago was around USD14.15. Current Brent Crude is USD58.38, so Jet fuel price should be around USD72.53. Average fuel price in 3Q18 report is USD95.00, a difference of USD22.47 which could have been RM252m less for this quarter.
Result supported by the sale of Expedia and deferred taxation of AAC disposal. No revenue of AAC disposal 3QR, mean it gonna be in Q4 as another 5 planes yet to be transferred.
Am I correct to say..one off gain of Expedia and differed to tax are mentioned...but AAC sales it's self is not in yet as it's not 100% complete due to 5 more aircrafts to go
In fact is not a bad results if you read carefully ASK cost actually drop even the oil price increased. That's based on fleet oil almost usd 90 to 100.
The fleet oil price will reduce to usd 60 to 70 eventually, the profit will be tremendous.
Besides, it holding more than 4b. Even distribute 40 cents, then still have 3b something plus balance cash to collect, should be another 1b. Attacksive or Defensive game also can play.
12% dividend. No debt .. cash rich . Oil price drop.. profit in billion now in bursa got stock like that meh ?beside AAG.. all said profit up because of different taxation.. but still 100 million profit if compare to all airlines in the world ?
Don't forget the AA only hedged not more on the fuel price. Other airlines possible already hedged at USD80. If fuel price continue at this level, other airlines will suffer while AA can conquer the market with profit. Just lets see.
Quite satisfy, the worst quarter operating still have profit. Moving forward just don't need worry too much d.
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ignissimia
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Posted by ignissimia > 2018-11-29 19:34 | Report Abuse
The crack spread of aviation fuel a few days ago was around USD14.15.
Current Brent Crude is USD58.38, so Jet fuel price should be around USD72.53. Average fuel price in 3Q18 report is USD95.00, a difference of USD22.47 which could have been RM252m less for this quarter.