Fuel Hedging Helps AirAsia Keep Fares Down
Reuters reports that AirAsia, helped by an aggressive fuel hedging policy, is confident that it can maintain low fares even with high jet fuel prices. “We don’t like it, but we are comfortable that we can maintain low fares even as jet fuel is at USD$80″, said CE Tony Fernandes. AirAsia missed its full-year earnings target of MYR160m ringgit (US$42.3) forecast in its prospectus. The airline earned a pre-tax profit of MYR125.48 m for the year to June 30, 2005. It said in its results statement that jet fuel prices remained the principal challenge for the airline, although this had been partly mitigated by hedging and a fuel surcharge in mid-July.
Prahok @ November 18, 2005