Fuel Contracts
Join Date: May 2002
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Join Date: Dec 1998
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I am not certain these number are correct, but if they are, then everyone needs to ponder the stark reality of them. Effectively, those numbers, combined with new (and possibly larger) hedging losses mean the end of everything.
"...The airline's largest cost last year was oil, accounting for 28.4 percent of operational costs. From 2015 to 2017, it lost US$8.47 billion, US$8.46 billion and US$6.38 billion in oil hedges respectively. The company only lost US$101 million in 2019 and gained US$13 million in the second half of 2019 in oil hedges..."
I might also add that no one at a senior level has been held accountable. Not a single individual. The same abjectly incompetent and arrogant people are still in charge. They have "lifeboats"....the rest of us, not so much. Sad.
"...The airline's largest cost last year was oil, accounting for 28.4 percent of operational costs. From 2015 to 2017, it lost US$8.47 billion, US$8.46 billion and US$6.38 billion in oil hedges respectively. The company only lost US$101 million in 2019 and gained US$13 million in the second half of 2019 in oil hedges..."
I might also add that no one at a senior level has been held accountable. Not a single individual. The same abjectly incompetent and arrogant people are still in charge. They have "lifeboats"....the rest of us, not so much. Sad.
Join Date: May 2002
Location: Fragrant Harbour
Posts: 314
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I am not certain these number are correct, but if they are, then everyone needs to ponder the stark reality of them. Effectively, those numbers, combined with new (and possibly larger) hedging losses mean the end of everything.
"...The airline's largest cost last year was oil, accounting for 28.4 percent of operational costs. From 2015 to 2017, it lost US$8.47 billion, US$8.46 billion and US$6.38 billion in oil hedges respectively. The company only lost US$101 million in 2019 and gained US$13 million in the second half of 2019 in oil hedges..."
I might also add that no one at a senior level has been held accountable. Not a single individual. The same abjectly incompetent and arrogant people are still in charge. They have "lifeboats"....the rest of us, not so much. Sad.
"...The airline's largest cost last year was oil, accounting for 28.4 percent of operational costs. From 2015 to 2017, it lost US$8.47 billion, US$8.46 billion and US$6.38 billion in oil hedges respectively. The company only lost US$101 million in 2019 and gained US$13 million in the second half of 2019 in oil hedges..."
I might also add that no one at a senior level has been held accountable. Not a single individual. The same abjectly incompetent and arrogant people are still in charge. They have "lifeboats"....the rest of us, not so much. Sad.
I believe you are correct. The fuel hedge numbers for 2015-17 should be in HKD and even then they are off by a couple billions. However the 2020 hedging numbers are pretty close.
Cathay Pacific (0293.HK) hedged around 35% of its 2020 fuel at between $61.37 and $65.41 per barrel of Brent.
https://www.reuters.com/article/us-h...-idUSKBN2171FJ
Join Date: Aug 2007
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It is absolute madness to continue to hedge fuel. They think they are so clever yet they are bankrupting the company with their incompetence. Fire them all and pay the spot price, we would have been much better off if they had never hedged at all, ever.
Join Date: Aug 2008
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Careful guys! You might be accused of wearing a tinfoil hat, the surest sign that you are onto something. I think employees, via their trade unions where appropriate, need to be asking detailed questions about fuel hedging. There is obviously no accountability for these stiffs at CX, and that hurts the airline, which is of clear concern to the employees. Full investigation and accountability should be forthcoming.
