KUALA LUMPUR: MALAYSIAN AIRLINE SYSTEM BHD []'s (MAS) earnings in the first quarter ended March 31, 2011 were impacted by the higher fuel prices, said its managing director and chief executive officer Tengku Datuk Azmil Zahruddin said.
He said on Wednesday, April 13 the high fuel price is 'definitely making a negative impact on us'.
Tengku Azmil said about 25% of the airline's jet fuel for 2011 was hedged at US$90 per barrel but the price was now about US$140. On April 1, it was US$136.40.
IATA had forecast jet fuel price to average US$123.10 per barrel this year and the impact on the 2011 fuel bill would be US$53 billion.
As for the fuel surcharges, he said they were insufficient due to the high fuel prices. The fuel charges were increased on a region to region basis.
He said on Wednesday, April 13 the high fuel price is 'definitely making a negative impact on us'.
Tengku Azmil said about 25% of the airline's jet fuel for 2011 was hedged at US$90 per barrel but the price was now about US$140. On April 1, it was US$136.40.
IATA had forecast jet fuel price to average US$123.10 per barrel this year and the impact on the 2011 fuel bill would be US$53 billion.
As for the fuel surcharges, he said they were insufficient due to the high fuel prices. The fuel charges were increased on a region to region basis.
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