Positive outlook for Malaysia's aviation sector

PETALING JAYA: The local aviation sector can look forward to a more positive outlook, given the slump in jet fuel prices, which have dropped by 50% to US$60 per barrel.

Maybank IB Research said in a report yesterday that the decline in jet fuel prices, stemming from the fall in crude oil prices, would improve airlines’ margins significantly, as jet fuel was the largest cost item for airlines, constituting nearly 45% to 58% of total operational costs.