spannersatcx.........spot on. The operating loss is the concern.
If you were running a business that sold widgets, and due to the downturn you were losing cash each month, your company would be operating at a loss. A 'paper fuel hedging gain' has, for illustration purposes, a similar effect to a charity giving your company a million dollars. It increases your net tangible assets and, on paper, you'll then make a profit for the reporting period. It doesn't, however, bode well for the future, as your company's core business is still running at a loss. That's why our CEO is concerned despite the 'paper' profit.
Yes, like any company, Cathay employs
PR spin doctors to the company's advantage. But, if we believe the auditors, the picture isn't pretty.
lmh