Stock Name: AIRASIA
Company Name: AIRASIA BHD
AirAsia; Fully Valued; RM3.35
Price Target: RM3.10; AIRA MK
AirAsia has adjusted its fuel surcharge effective for bookings made since yesterday amidst persistent high jet fuel prices. It believes that jet fuel prices will remain at current levels for the year, and has taken this measure which is expected to cover US$5/bbl of its fuel costs. In March 2012, jet fuel prices traded at an average of US$136/bbl (YTD: US$132/bbl), which is close to our full-year assumption of US$131/bbl for FY12F.
We believe that the increase in fuel surcharge will increase overall ticket prices, which may affect passenger demand. We remain cautious on the outlook for the aviation industry due to the stubbornly high jet fuel prices. We maintain our Fully Valued call on AirAsia with RM3.10 TP as we continue to foresee a challenging year ahead.
Source: HwangDBS Research - 28 March 2012
Company Name: AIRASIA BHD
| Research House: HWANGDBS | Price Call: SELL | Target Price: 3.10 |
AirAsia; Fully Valued; RM3.35
Price Target: RM3.10; AIRA MK
AirAsia has adjusted its fuel surcharge effective for bookings made since yesterday amidst persistent high jet fuel prices. It believes that jet fuel prices will remain at current levels for the year, and has taken this measure which is expected to cover US$5/bbl of its fuel costs. In March 2012, jet fuel prices traded at an average of US$136/bbl (YTD: US$132/bbl), which is close to our full-year assumption of US$131/bbl for FY12F.
We believe that the increase in fuel surcharge will increase overall ticket prices, which may affect passenger demand. We remain cautious on the outlook for the aviation industry due to the stubbornly high jet fuel prices. We maintain our Fully Valued call on AirAsia with RM3.10 TP as we continue to foresee a challenging year ahead.
Source: HwangDBS Research - 28 March 2012
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