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  • 11 minutes ago
Malaysia Aviation Group (MAG) has secured sufficient fuel supply to sustain operations as per current fuel contract, despite growing concern over shortages and rising oil prices globally.

The assurance comes amid concerns that some regional carriers may face fuel constraints as early as mid-year due to supply disruptions.

President and group chief executive officer Nasaruddin A Bakar said MAG’s position is supported by contractual supply arrangements across both domestic and international markets.

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00:00So currently, based on the contracts that we've got with our suppliers, we have got commitment from all our suppliers
00:04across, within Malaysia and also outside Malaysia, that they are able to support us.
00:09But there are certain states and also certain countries have got a limitation of fuel uplift that we can do.
00:15So with that, we manage our operations accordingly by uplifting fuel from certain stations that are able to give us
00:22fuel.
00:22But the commitment that we've got by our vendors is that we are able to continue flying until the end.
00:30In terms of the fuel supply.
00:31So we know that hedging is so critical and it's very important.
00:35Today, as I mentioned, we are hedging approximately about 36% across 2026.
00:39And we understand that hedging too much could be detrimental if the fuel price drops.
00:43So we have put a number that we believe is quite optimised to ensure that the hedging is beneficial eventually
00:50if the price goes down.
00:52That's why we hedge only about 36% today on average and in quarter two about 50%.
00:57With regards to the second question on Kassana's drawdown, you think?
01:00So just to add to what Captain Nasser has explained, we went into a collar hedge.
01:05So we have a cap and then we actually have a floor that's quite low.
01:10So it's 60 plus to the end of the, towards the later part of the year.
01:15So if you talk about over hedging, no, I think we are very well hedged in terms of upside and
01:22downside risk.
01:23So we have a cap and then we have a cap.
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