Tiger Airways to save around S$5m as jet fuel prices finally fall

Fuel prices finally softened after being 'stubbornly high' for more than a year.

According to OCBC, the SGD-adjusted jet fuel price is currently trading at 10% below the average of jet fuel prices in the current quarter, which is in turn 7% QoQ lower than in 4QFY12.

Here's more from OCBC:

After remaining stubbornly high for more than a year, jet fuel prices have finally soften significantly. Tiger Airways (TGR) is likely to benefit from the current respite in jet fuel prices, especially with fuel cost contributing to more than 40% of its operating costs. Based on our estimation, TGR should be able to achieve ~S$5m of savings in fuel cost in 1QFY13, given the 7% QoQ fall in average jet fuel prices.

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