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Old 14th Feb 2012, 09:05
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sandpit
 
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I am sure it is legitimate. However, it was also reported that the fuel hedging strategy contributed over US$300M to the bottom line. So a Net Profit of US$14M would have been a loss of US$286M if it hadn't been for a bet that came off.

Good business acumen? Maybe. But if I recall correctly Cathay and others had big hedging gains in 07/08 followed by massive losses in 09 when the oil price plummeted.

So I guess time will tell if they can continue to out gamble the market and whether they can make a profit without a little gambling action on the side. I certainly hope so!
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