From Bernama – High Fuel Cost To Trigger Spike In MAS & AirAsia’s Operating Costs, Says MIDF


Dateline 2010-01-14:

 The spiralling fuel price is expected to trigger a spike in the operating costs of Malaysia Airlines and AirAsia by 16 per cent and 46 per cent respectively in 2011.

This may in turn force both the airlines to impose a 25 per cent fuel surcharge.

Given that the fate of the aviation sector is still intertwined with the trend in crude and jet fuel price, the tolerance level of the industry is around US$117 to US$125 a barrel of jet fuel price, said MIDF Research.

It said at US$125 a barrel of jet fuel, the price should correspond with US$110 a barrel of crude oil and with the expectation of it averaging at US$105 a barrel in 2011,the airlines will still be within safe territory for the year.

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This entry was posted on Wednesday, January 19th, 2011 at 6:00 am and is filed under Malaysia, oil and gas. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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