Originally Posted by
Ladloy
Rex has released a statement to the ASX which is great for a read.
Aagh yes, what an announcement. Yet another mealy mouthed statement that was aimed at sinking the knife into AFAP and the pilot group. And interestingly, they couldn’t help mentioning ‘predatory pricing’ plus they had a shot at the AFAP President for being employed by a ‘competition’ airline. What an absolute lowball assault by REX. Just shows how pathetic the CEO and Mr Sharp are. Get these two clowns a tissue box and tell them to cry elsewhere.
I took a historical look at two things this morning - the REX share price chart for the previous 12 months and then the previous 5 years, as outlined on the ASX. Then I looked at the Brent crude oil prices for the past 12 months and then the previous 5 years. What it shows is that REX overall profits are dependant on the oil prices of the day. Oil goes up, REX profits go down. So that brings me back to the question of how well are they doing with hedging their fuel costs? Not too well by the look of the charts. It would seem that they haven’t factored oil prices into their business model very well at all. That has to be attributed to the CEO, Board, and any other financial decision maker in the company. And at $121 per barrel this morning, that’s not good. I noticed that oil has barely been below $100 per barrel since 14 February 2022. Now if they hedged around 80% of their fuel on 20 December 2021 they would be sitting reasonably well at the moment as the price was $70.51 per barrel. But I’m doubting it. The CEO’s vitriol expressed towards the pilot group is tinted with desperation. The executives are deflecting attention from their own mistakes and trying to blame COVID, Pilot salaries, predatory pricing and anything other than their own incompetencies. What’s next - blame 5G, solar flares and a declining whale population for their financial issues?