CATHAY PAC AIR (00293.HK) to record $500M loss over fuel hedges
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CATHAY PAC AIR (00293.HK) to record $500M loss over fuel hedges
19th December 2014
AAStocks Financial News
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According to local media, CATHAY PAC AIR (00293.HK) said in end-November that the company will record a book loss of $400 to $500 million from fuel hedges due to the recent volatile oil prices.
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Also remember, when shutting engines down when taxying, that your fuel savings and potential pay raises helped fund both the CX staff party, and the CX Heads of Dept dinner last week. The latter at a cost of $5 million HKD.
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I kinda like dinners and parties and have far less issue with these than being lied to and played for a sucker.
When there's money involved, the Great Chinese Laundry has nothing to do with clothes.
When there's money involved, the Great Chinese Laundry has nothing to do with clothes.
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Don't worry. Cathay will soon sincerely apologize to all its employees and shareholders for that mistake and for not living up to the expectations of everybody else in this company who strive to make this the 'Best airline in the world'.
They will hold themselves accountable for it as they always do and as the respectful and trustworthy employer they are. Then expect promises to make changes to avoid this sort of gross mismanagement.
They are very good at this.
They'll come forward soon, you'll see.
I'm sure...
Any minute now...
They will hold themselves accountable for it as they always do and as the respectful and trustworthy employer they are. Then expect promises to make changes to avoid this sort of gross mismanagement.
They are very good at this.
They'll come forward soon, you'll see.
I'm sure...
Any minute now...
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Hedge
Just expensive insurance they can book as a loss to reduce their tax burden.
They don't talk about the windfall spot price ( drop of $40-50 / barrel) gain they are making. Ie they would have been quite happy if the price was stable at $90-100 or what ever they planned to pay for it - now they are still paying that price for contracts, but you can bet they are only 50% hedged - hedge the hedge.
They don't talk about the windfall spot price ( drop of $40-50 / barrel) gain they are making. Ie they would have been quite happy if the price was stable at $90-100 or what ever they planned to pay for it - now they are still paying that price for contracts, but you can bet they are only 50% hedged - hedge the hedge.
