SIA least exposed Asian airline to rising fuel prices
It has about half of its fuel requirements hedged: HSBC
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Nisha Ramchandani
SINGAPORE Airlines (SIA) is the least exposed among Asian airlines to rising jet fuel prices while earnings of budget carrier AirAsia X are the most at risk, says HSBC Global Research.
Fuel prices have been picking up pace on the back of tensions in Iraq where Islamic militants have captured the city of Mosul in the north, sparking fears that their ongoing march could threaten oil exports. The price of Brent had risen as much as 4 per cent from last week, although oil prices eased slightly yesterday after the US said it would send up to 275 troops to protect the US Embassy and other US interests.
"Of our Asian airlines coverage, we estimate Singapore Airlines is the least exposed - it has about half of its fuel requirements hedged," HSBC analysts Mark Webb and Rajani Khetan said in a report yesterday.
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