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Based on reports from early March 2026, as Brent crude oil prices surged due to Middle East conflicts, AirAsia X (a long-haul affiliate of AirAsia/Capital A) faces significant financial vulnerability due to a lack of fuel hedging.
Financial Impact: Every US$1 per barrel increase in jet fuel prices is estimated to reduce AirAsia X's profits by RM80 million (approx. US$18 million).
Context: This vulnerability is due to the airline operating without fuel hedges, leaving it exposed to full market swings.
Total Risk: Elevated fuel prices were expected to push AirAsia X from a previously estimated profit into a loss of 1.4 billion ringgit.
Cost Sensitivity: Fuel makes up roughly one-third of the airline's operating costs, and jet fuel prices have at times exceeded US$120 per barrel.
Note: These figures are based on estimates from March 2026 and are subject to change based on the airline's hedging strategy and volatile oil prices.
what happen to AAX will also affect CapA. becareful.
i read a comment in kl screener, i think we all need to know about this. AAx affiliate to CapA. it will affect eventually
not, you wrong, for every dollar Brent up, AAX loss will be RM80 million (qpprox USD18 mil). approx total loss around RM1.4 billion. fuel makes 1/3 of airliner cost. sell first enter when war is about to over. USD70 to USD100 or more is huge
sama, Hedge with oil. tp kena cepat. now I sold capA back. look at news, Trump promise berlawanan dengan situation on the ground. I think oil akan naik more after this. if not i buy again capA
after Trump bomb here and there, sunk iran ship. do you think iran easily wanna stop.? today they said will use bigger missile today onward. oil will up above usd100 back.
be cautious, maybe dead cat bounce. war long way to go. today G7 use stockpile to reduce price which for temporary measures. congrats who bought yesterday