AirAsia X: Weathering the Fuel Shocks

Post AirAsia X Bhd’s (AAX) briefing recently, analysts from Public Investment Bank came away ‘more at ease’ a’bout the Group’s near-term outlook amid jet fuel drastic price increase due to the Iran War.

This is largely due to sustained travel demand, despite new fuel surcharges (i.e. higher airfares) introduced to manage the jet fuel price surge triggered by the West Asian regional conflict.

AirAsia X

AAX has also implemented various cost-cutting measures such as capacity reduction, optimizing fleet maintenance and strategic network planning to mitigate the impact of today’s historically high jet fuel prices.

“That said, we cut our FY26-28F forecasts by an average of 46.8% to reflect weaker passenger growth and yields driven by the regional conflict. We maintain our Outperform call but lower our target price to RM1.85 (from RM2.80), based on 7x our estimated FY27F EPS,” says Public Investment Bank.

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