Another Day
Strangely enough none of you had much to say when hedging was working in our favour over the past 30 yrs.
And no doubt none of you would have much to say about whether we should discontinue it now.
I have only looked over the last two decades, not 30 years, but CX had made about $4billion over that time versus total fuel costs of > $325billion. So we had made just over 1% on fuel hedging until the end of 2014. Since then....well, you do your own math. But to put it into perspective, in the first half of this year the fuel hedging losses were equal to about 52% of the total non hedged price of fuel we used. So it appears as though we are recently either hedging about 40-50 times more than we have done for the last two decades, and/or someone decided to 'gamble' on fuel more than we have ever done in the last two decades!