Fuel price came in, on average, 33.7% year-on-year (y-o-y) higher from US$54.6bil since December 2017. The current environment serves as a proving ground for AAX to firm up its long-haul low-cost business model. “This is based on our average fuel price assumption of US$85/barrel (from US$79/barrel previously) for both fiscal years respectively,” the report stated. “Overall, results were within our expectations, accounting for 71% of our FY18E estimate of RM322.2mil,” Affin Hwang stated in their report. The downside risks include price competition, spike in claims, higher fraud cases and weaker premium growth.
Source: The Star October 12, 2018 00:00 UTC