Final Nail in the Coffin

[Air Profit]

The main Saudi oil terminal was attacked overnight. Now half of Saudi oil production is halted, experts predict at least $100/barrel of oil. That is all that CX needs to push them over the edge.

https://www.zerohedge.com/geopolitical/massive-fire-after-drone-strike-hits-worlds-largest-oil-processing-facility-saudi

[Air Profit]

Of course, we didn't hedge while oil has been at relatively low prices. We only do that when it's over $100/barrel....and for 5 years. Geniuses.

[Apple Tree Yard]

Even more ominously, the age of the "mass drone attack" is upon us. There can only be more mayhem and misery coming our way as a civilization. This won't end well. Certainly CX is woefully situated at this point to prosper. No career of any value left here, and I think we all know it.

[Slasher1]

Head for the hills the zombies are coming !

It’s TEOTWAWKI time !

[Apple Tree Yard]

No, it's TEOTWACXIF time !

[reazasassain]

Wouldn't it be great if Cathay kept their original fuel hedging policy while the price of oil was at $30 a barrel. I'm not an expert by any means, but the market always ebbs and flows and the use of hedging was meant as a means to try to stabilize large fluctuations in the cost of fuel. If Cathay would have maintained their original hedging policy they would have broke even and those original losses would be reversed as we would have hedged 5 years of oil at $30 a barrel while everyone else is paying over $100.

Bless Cathy's heart.

[FlexibleResponse]

Hedging strategy is meant to minimize the risk of adverse movements in the future cost of consumables that are essential for production.

Cathay once made incredible profits by hedging their fuel.

Unfortunately, the Directors became addicted to those windfall profits and lusted after even more by taking greater gambles.

Cathay made hedging fuel a Profit Center instead of a long term Revenue Neutral Center, as is what hedging designed to do.

Not the first SNAFU for the greedy Directors.

[Air Profit]

My guess is that, ironically, CX has NOT hedged while fuel has been at a relatively low price. So once again, their misguided strategy will result in all of us bearing unnecessary cost. True genius and the finest minds in business. We are soooo lucky.

[Roy De Kantzow]

My guess is that, ironically, CX has NOT hedged while fuel has been at a relatively low price.

Bullsh1t! Total Bullsh1t!

Even I as a former employee (within the last year) know that CX hedge fuel. How do I know? Because GH told me so. They have historically hedged and will continue to do so, as do most airlines.

I somtimes wonder if people like you even work for CX?! Half a dozen of you constantly moan and complain, yet most of what you say is fantasy.

In footballing terms, Alex Furguson left Manchester United at the right time - he left at the top. You guys are like Arsene Wenger, you're hanging around too long. Time to let go and move on, let the younger generations have their time, please go and enjoy retirement!

[Air Profit]

Calm down Roy. My comment was intended as irony. Unfortunately, we know too well they hedge. It cost all of us thousands of dollars in lost wages and bonuses (but management didn't suffer). Probably the worst hedge contract in the history of airlines worldwide. Who in their right mind would hedge at relatively historic highs, AND for 5 years? !!. Most hedge two years out max, why, because no one knows what could happen much beyond that. You sound like you need a rest more than the rest of us. Pop a heart pill and go and sit on the porch.

[Paul852]

From a Swire perspective that rather depends who was on the other end of that zero-sum bet.

[ironbutt57]

https://www.aljazeera.com/news/2019/09/yemen-houthi-rebels-release-saudi-attack-video-190929130644121.html

here's another nail...a bigger one