Why no mention of fuel price Anna?
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Join Date: Feb 2006
Location: hongkong
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Why no mention of fuel price Anna?
Dear AT,
I note that mid year in one of the your "operational updates", you mentioned that the price of oil had risen to almost $70/ barrel, from $45/ barrel in January. You also made mention of fuel price volatility and that fuel was Cathay's biggest cost.
I'm just wondering, now that fuel is around $40/ barrel why there is no mention of this in your dispatches?
Just for my clarification is the following correct?
Option A - Management gets the fuel hedging correct. Answer - but that was just a mark to market "paper" profit so we shouldn't really count that for profit share purposes.
Option B - Management gets the fuel hedging wrong (like now) - Answer - Mark to market fuel hedging loss, which under accounting principles will be directly offset against operating profit. This results in a reduced profit share for employees using the formula based on profit and revenue.
Am I just cynical?
I note that mid year in one of the your "operational updates", you mentioned that the price of oil had risen to almost $70/ barrel, from $45/ barrel in January. You also made mention of fuel price volatility and that fuel was Cathay's biggest cost.
I'm just wondering, now that fuel is around $40/ barrel why there is no mention of this in your dispatches?
Just for my clarification is the following correct?
Option A - Management gets the fuel hedging correct. Answer - but that was just a mark to market "paper" profit so we shouldn't really count that for profit share purposes.
Option B - Management gets the fuel hedging wrong (like now) - Answer - Mark to market fuel hedging loss, which under accounting principles will be directly offset against operating profit. This results in a reduced profit share for employees using the formula based on profit and revenue.
Am I just cynical?
Join Date: Aug 2007
Location: Europe
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It was always well communicated in the past when a increase in the fuel surge charge was being sort from the CAD and would then be past on to the customer. Never heard of these charges being reduced though!
