Losses already a given. It is just a question of how bad for current quarter and going forward as the Iran war doesn’t seem to end soon. Management ought to give guidance and Press Conference soon as none since the start of the Iran war.

Correct but after a global financial crisis if energy crisis protracts. This round is different as a lot of Middle East countries oil and gas infrastructure already badly damaged and productions severely dented for months/years. Even all manufacturers/businesses will be facing severe margin compression, which will dampen consumer spending on overseas travelling, holidays etc. Low demand due to high fuel surcharges will result in aeroplanes being grounded on various routes. Current situation might be worse than COVID if countries have to start to ration petrol purchases.

possibility of losses is high and given due to the spike in jet fuel. the only way is to increase the airfares to cover for the jet fuel. the important question is how long it stays at elevated price. Saw the news from TheEdge that jet fuel price has doubled and jet fuel accounts for 30% to 40% of AAX cost structure. Min 20% of fares increase should be expected in the future if jet fuel price stays elevated.

Higher fuel surcharges will result in lower travel demand and grounded aeroplanes. Fixed cost (high interest cost) will adversely hit airlines just like during Covid period. Trump indicated 1 week for Iran conflict. Now, we are heading into Week 5 and no end in sight yet.