KUALA LUMPUR:'' Hwang DBS Vickers Research said amidst the on-going uncertainties in the Middle East and North Africa region, fuel prices have soared substantially in the last 4 weeks
'We raise our average FY11 jet fuel assumptions from US$105 per barrel to US$125 per barrel and cut FY11 earnings by 10%-46% for the various regional airlines,' it said on Thursday, March 17.
HDBSVR said strong demand and fuel surcharges help to offset some but not all of the increase in fuel costs, with premium network airlines being better positioned than others to deal with higher jet fuel costs.
'We have downgraded MAS and AirAsia but still like SIA, Cathay Pacific, Thai Airways, Air China as well as China Southern Airlines, primarily as we believe share prices have declined beyond what is still a fairly sanguine outlook for these carriers,' it said.
'We raise our average FY11 jet fuel assumptions from US$105 per barrel to US$125 per barrel and cut FY11 earnings by 10%-46% for the various regional airlines,' it said on Thursday, March 17.
HDBSVR said strong demand and fuel surcharges help to offset some but not all of the increase in fuel costs, with premium network airlines being better positioned than others to deal with higher jet fuel costs.
'We have downgraded MAS and AirAsia but still like SIA, Cathay Pacific, Thai Airways, Air China as well as China Southern Airlines, primarily as we believe share prices have declined beyond what is still a fairly sanguine outlook for these carriers,' it said.
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