AirAsia, Capital A shares surge as oil prices plunge
KUALA LUMPUR: Aviation-related stocks surged in early trade on Thursday as a sharp decline in crude oil prices raised hopes of lower fuel costs for airlines.
KUALA LUMPUR: Aviation stocks surged on Thursday as oil prices plummeted, raising optimism about reduced fuel costs for airlines. AirAsia Group and Capital A led the gains, with both experiencing double-digit increases. AirAsia's shares climbed by 20.88%, or 9.5 sen, to 55 sen, while Capital A rose by 15.22%, or 3.5 sen, to 26.5 sen. The airline's market capitalization reached RM1.74 billion, and Capital A's stood at RM1.14 billion.
The gains followed a sharp drop in global oil prices due to expectations of a potential end to the US-Israeli conflict with Iran following the US midterm elections. Brent crude futures for January delivery dropped by 8.7%, settling at US$94.62 a barrel. Lower oil prices could lead to lower fuel costs for airlines, potentially boosting their operating margins.
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