KUALA LUMPUR,. AirAsia Bhd group chief executive officer Tan Sri Tony Fernandes cheered budget airlines’ tailwinds, which include lower crude oil prices and a stronger ringgit.
“Oil continues to drop. Asean currencies led by the ringgit holding its own. Airports now all focusing on LCC (low-cost carriers). Let the good times roll in,” Fernandes said via Twitter today.
Fernandes said this after analysts said AirAsia is expected to gain from a stronger ringgit. CIMB Investment Bank Bhd wrote in a recent note: “We have identified auto, airlines and F&B players as the biggest winners should the ringgit continue to strengthen, due to their lower operating costs. Our top picks for the stronger ringgit theme are AirAsia, Berjaya Food Bhd and DRB-Hicom Bhd.”
Today, the ringgit was traded at 3.9253 against the US dollar at the time of writing. Over the last one year, the exchange rate was between 3.8663 and 4.4618.
In crude oil markets today, Reuters reported that US West Texas Intermediate (WTI) crude futures were at US$59.17 a barrel at 0123 GMT, down two US cents from their last settlement. WTI was trading above US$65 in early February.
Brent crude futures were at US$62.77 per barrel. Brent was above US$70 a barrel earlier this month.