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Thread: Cathay Pacific losses snowball to HK$1.25 billion, first back-to-back loss in 71-year
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Old Mar 14, 2018, 8:29 am
  #18  
1010101
 
Join Date: Feb 2011
Posts: 5,797
Originally Posted by andersonCooper
1. The hedge exposure comment is quite hindsight. If it had gone the other way around it would be a huge profits, and nothing was "stupid" since oil price almost follows "random walk" like FX. I think it's fair to say they bet it wrong, but nothing stupid here.
2. Depending on your route. On regional I do observe quite empty seats, but a lot of ex-EWR/HKG Y/PEY is quite packed (except for JFK - YVR). Last time HND was also packed for me but that's only 1 sample size.
It was not stupid to hedge fuel prices, but what was extremely stupid was the size and duration of the hedges they placed. It was gambling, pure and simple.
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