Airlines, as large consumers of fuel are particularly impacted by high crude oil prices as it represents between 30% and 40% of operational input cost, dependent on the age of one's fleet. Mango has adjusted its aggregate energy forecast to a range between US$115-120 per barrel for the remainder of 2012. This, along with the added pressure on consumer disposable income and an already depressed market will squeeze aviation margins further.
Mango is fortunate to be well positioned in terms of its uniform new generation fleet of Boeing 737-800 aircraft and the airline has, during previous peak-oil pricing periods, mitigated effectively by reducing fuel consumption through exercises such as removing excess weight from aircraft and introducing tighter operational efficiencies.
