Explains why these muppets have become such penny pinchers.
When you give 94 cents in every dollar you make to a hedge fund you're left with very few pennies to pinch.
Fuel is to a large extent automatically hedged through ticket prices, fuel surcharges and the competitions requirement to purchase the same product at the same price. 60 percent hedging position is not a hedge, it's a gamble.
For them to shrug it off with the throw away line that they still believe in fuel hedging covers up the fact we'll never see hedging at 60 percent again. An airline encourages open and honest reporting of human errors. Some leadership from the top wouldn't go astray.
Over the last 2 years the CX spokeswoman has also gone very quiet that historically, they've had more hedging gains than losses. I wonder why..
What should have been a $4,843 million profit is reduced to $353 million by the use of the throw away line that they believe this is the correct strategy.
The 7 percent plummet in the share price would suggest the shareholders disagree.
Last edited by Progress Wanchai; 17th Aug 2016 at 08:13.