AAV's chairman says Thai AirAsy has enough cash flow and will keep flying through Q4 and Q1, despite the Malaysian AirAsy's liquidity problems. Jet fuel rose about 124% to US$183 per barrel in Q2, and fuel is now 50-55% of costs versus a normal 35-40%. The airline raised fares by over 20%, and advance bookings for Q4 are about 86%. It has no fuel hedge at present. For SMEs, this signals that airfares and air freight costs stay high, so plan travel budgets and cargo pricing with that in mind. Customers booking trips are not at risk for now.
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