Airasia

PETALING JAYA: Shares of AirAsia Bhd climbed to a three-year high, on expectation that cheaper jet fuel prices and strong ticket sales will boost earnings.

The stock had already rallied 141% year-to-date.

AirAsia and its long-haul unit AirAsia X Bhd are expected to release their latest quarterly results by the end of the month.

Affin Hwang Capital expects AirAsia to report a stellar performance.

“Based on the strong operating statistics as well as cheaper jet fuel prices, we expect the second quarter revenue and net earnings to come in stronger y-o-y compared with the RM1.3bil and RM243mil registered in corresponding quarter last year,” it said.

AirAsia share price s closed the day higher, up 15 sen to RM3.11 with 40.87 million shares changing hands.

Meanwhile, AirAsia X Bhd (AAX) and their warrants also saw strong gains in active trading.

AAX rose by 5.5 sen or 13.6% at its close to 46 sen on volumes of 233.6 million shares.

Its call warrants AAX-CU and AAX-CV rose by 2.5 sen or 41.67% and 4.5 sen or 52.94% respectively to 8.5 sen and 13 sen.

In the last quarter, AAX posted a strong turnaround from its loss making position a year ago.

The first quarter ended March 31 saw AAX posting a net profit of RM179.5mil from a net loss position of RM125.9mil a year ago.

The quarter’s revenues were also higher at RM990.7mil compared with RM775.4mil a year ago.

In another earlier report, Affin Hwang Capital Research also said that strong airline earnings momentum into 2017 may be challenging.

Affin Hwang Capital said that given the uptrend in oil prices, a sustained strong earnings momentum into 2017 may be challenging.

It said that its jet fuel assumption for 2017 is US$68 per barrel.

Meanwhile, Reuters reported AirAsia India saying that it planned to gradually expand its fleet and network in India as it would like to boost its small market share in that country.

The airline said it planned to add a seventh A320 jet to its fleet and include Hyderabad, India into its network of destinations by September.

AirAsia India chief executive Amar Abrol said it was looking to expand further on this front and that it would be investing money for this purpose in the future.