Originally Posted by
pfvspnf
There wasn't too much fuel price movements , how is the book loss so high ?!
It's like this. They agreed to buy the oil already at a fixed price of $150 / barrel a few years ago. What's crazy is the supplier could be buying on the street price now of $50-60 / barrel and selling it to CX at $150 / barrel to fulfil their side of the deliverables!!! Someone is getting filthy rich on this.
Regarding the currency hedge, I vaguely recall someone made a bad play on the Australian dollar about 10 years ago, but it was the daughter of a board member. I don't remember if it was directly impacted on Cathay Pacific or not.