Aviation sector looks set to gain from lower jet fuel prices

RHB Research said Malaysian Airline System (MAS) was in the midst of a restructuring programme that would likely involve capacity cuts on loss-making routes and frequency reductions. This should put an end to its irrational pricing strategy, the main cause behind the sector

PETALING JAYA: The declining oil prices will favour the aviation industry by improving overall earnings, RHB Research said.

While it does not see the demand growing strongly, the sector’s earnings would be underpinned by yield recovery and the positive impact from lower jet fuel prices.