Fall in jet fuel prices may lift AirAsia profits
Hong Leong Investment Bank sees prices staying at current levels in Q4 and whole of 2015
Add BT as a preferred sourceKuala Lumpur
THE decline in the price of jet fuel by more than 17 per cent since the first half of 2014 is likely to boost the profitability of low-cost carrier AirAsia at a time when the airline is in danger of being downgraded by aviation analysts.
Jet fuel prices have dropped to US$100 now from roughly US$121 a barrel in the first quarter of the year. The dip is consistent with the overall plunge in global crude oil prices as a result of higher supply against subdued global demand over economic slowdown in Europe and China.
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