Falling jet fuel prices positive for Capital A

PETALING JAYA: Capital A Bhd, the holding company of budget carrier AirAsia, could benefit from a recession, as dropping jet fuel prices are likely to lift the Practice Note 17 (PN17) company’s margin substantially.

In a note, Maybank Investment Bank (IB) Research analyst Samuel Yin Shao Yang said lower fuel prices would require Capital A to lower its fares, which in turn could lead to more seats being sold.