KUALA LUMPUR (March 28): RHB Research Institute is maintaining its market perform outlook on AirAsia with a fair value of RM3.72.
It said the low-cost carrier raised its fuel surcharge by 30%-50% to offset the constant high jet fuel prices which had been trading at an average of US$136 per barrel in March 2012.
AirAsia expects to recoup an additional US$5 a barrel of the fuel bill with the fuel surcharge hikes.
“The latest fuel surcharge hikes will boost FY12/12-14 by 8%-11%. However, we are keeping our forecasts.
“We are more inclined to see the US$5 barrel recovery in fuel bill with the latest fuel surcharge hikes as an additional US$5 barrel cushion against our jet fuel price assumption of US$125 barrel,” it said.
RHB Research said also if jet fuel prices retreat, there is a fair chance that AirAsia may reduce the fuel surcharge.
It said the low-cost carrier raised its fuel surcharge by 30%-50% to offset the constant high jet fuel prices which had been trading at an average of US$136 per barrel in March 2012.
AirAsia expects to recoup an additional US$5 a barrel of the fuel bill with the fuel surcharge hikes.
“The latest fuel surcharge hikes will boost FY12/12-14 by 8%-11%. However, we are keeping our forecasts.
“We are more inclined to see the US$5 barrel recovery in fuel bill with the latest fuel surcharge hikes as an additional US$5 barrel cushion against our jet fuel price assumption of US$125 barrel,” it said.
RHB Research said also if jet fuel prices retreat, there is a fair chance that AirAsia may reduce the fuel surcharge.
