2018 Outlook for Asia's Airline Industry

The video discusses the mixed outlook for the airline industry, highlighting the impact of rising oil prices on earnings, particularly in the Asia Pacific region. It examines capacity growth trends in countries like China, Japan, Thailand, Singapore, Vietnam, and Hong Kong, noting how these trends affect airlines. The video also identifies airlines with effective fuel hedging strategies, such as Singapore Airlines, Qantas, and Japan Airlines, which are better positioned to handle rising oil prices.

How does a 1% increase in oil prices affect Asia Pacific airline earnings?

• Decreases earnings by 2.6%

• Increases earnings by 2.6%

• Doubles the earnings

• Has no effect on earnings

Which countries are expected to have moderate capacity growth that benefits airlines?

• Singapore, Vietnam, Hong Kong

• China, Japan, Thailand

• India, Malaysia, Indonesia

• South Korea, Philippines, Taiwan

What is the expected impact of excessive capacity growth in Singapore, Vietnam, and Hong Kong?

• No impact on major carriers

• Pressure on yields for major carriers

• Improved market share for major carriers

• Increased profits for major carriers

Which airline is NOT mentioned as having a consistent fuel hedging policy?

• Cathay Pacific

• Japan Airlines

• Qantas

• Singapore Airlines

What is the main advantage of having a consistent fuel hedging policy for airlines?

• Higher customer satisfaction

• Protection against rising oil prices

• Increased ticket sales

• Improved in-flight services