Not so much "The Fight is On" as a game of chicken. Cathay knows they need to get this wrapped up before they go back to making money. The pilots just don't need to blink.
As has been said many times before, Cathay was making money before the fuel hedge; didn't make money during the hedge; and as long as oil doesn't go too much above 100 (wouldn't that be ironic) they will go back to making money. In the last case, they can claim the profits are due to the structural changes and cost-cutting efforts which were essential. Job done, bonuses please, next?