Mixed forecast for aviation sector, lower fares seen
PETALING JAYA: The local aviation industry is in for more turbulence this year, says Affin Hwang Capital Research.
Despite a highly profitable 2016 for the industry as a whole, the research house expects headwinds from increased competition from a reinvigorated Malaysia Airlines Bhd (MAS) as well as aggressive expansion by Malindo Airways Sdn Bhd to add pressure on industry yields.
Affin Hwang has retained an “underweight” recommendation for the industry, noting that last year’s performance was underpinned by record-low jet fuel prices, soaring air travel demand and a benign competitive environment owing to under-expansion in prior years.
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