ANN/THE STAR – Capital A Bhd, formerly AirAsia Group Bhd, is expected to break even by the third-quarter of 2023, supported by the easing jet fuel prices, higher fares and more aircraft returning to service, said Maybank Investment Bank (Maybank IB) Research.
After a volatile financial year 2022 due to the Ukrainian conflict, the research house expects jet fuel prices to ease to an average of USD110 per barrel in 2023 from USD125 per barrel in 2022.
“This is due to the Brent crude oil prices which have eased to below USD100 per barrel as the hitherto high prices had led to demand destruction. The jet fuel – Brent crude oil crack spreads at USD30 per barrel – are also easing as refining capacity recovers,” said the research house in a note to clients.
