Some places got plenty of sifu one...

Kung Fu movies also a lot of sifu......

Strong cash flow? Omg. Lol. I guess the proceed from disposal of airplanes under their ingenious sale and leaseback engineering is considered strong cash flow. Hohoho...

today bleed until ICU liao

technically if no Covid-19 the oil price today is amazing for airlines.

Technically no since MOST airlines hedge their oil requirements.

In a normal business sense hedging is OK but on the other hand, some abuses it and uses hedges as a form of betting.

Airasia current fuel hedges amounts to 14.8 million barrels. Ahem. This info can be found in their qr report. As a gauge, go run thru this figure and compare previous years amount and one can have a fair assessment if Airasia is over hedging or not....

So anyway this 14.8 million barrels is already hedged at X price. And Airasia said "For the year 2020 and 2021, Brent swaps represents up to 73% and 20% of the Group’s total budgeted fuel consumption each of the years respectively."

Now fuel prices has crashed. Prices already hedged at a higher prices. How to untung? Err.. Keep buying fuel hedges? What if fuel continues to fall? Airasia cash flow so good meh?

Continue...

https://www.theedgemarkets.com/article/aira...all-fuel-hedges

That's an old article... but interesting points to note...

1.He added that at US$50 per barrel, it would have to incur a total of US$481 million of fuel-hedging losses. - so said Ah Tony back then. Also see how it said it wanted to come clen with its hedges back then?

Anyway atm, oil has just down the same. It has plunged... So would the plunge in oil helped AirAsia? It would ONLY if Airasia bought spot prices of the oil.

2. Read the part about credit interest rates swaps...

Current hedged amount as per latest qr shows 1.8Bilion.
LOL. A lot of money hedged, yes?

And rates have come down hard... but again for Airasia it had already hedged at a higher price.....

not sure about AirAsia.. but during last oil crash in 2015 fuh MAS punya prices damn syok. Hopefully they can change the hedging. After covid 19 then can travel the world liao if saudi continue to throw petrol proce.

See the other posting....

RIP. Cash flow gone Air Asia bankrupt

Ps... you can change your hedge if you unwind your existing hedges... which means millions of losses.

Tony got big mountain and AP queen behind him. Few million is spare change.

Not as straight forward since currently it's disposal of planes in its sale and leaseback program is helping to cushion its financial.

Point is, if flights are cancelled left right center... losses will be mega huge.

Last crash was from 90+ to fifty... and the said losses was around 480 million. (spare change???)

This time... how?

Oh wow thread come alive again on downtrend but very quiet when it recovered from 0.99 last time

Anyway, being an optimist, I’m gonna queue up and cost average in 1k increment per 0.1 dip maintaining same exit horizon at late-2021

EDITED: a disclaimer lol, my behaviour is essentially gambling, don’t join the train if your analysis says AA will become penny stock or bankrupt by June 2020

This post has been edited by Intimidated: Mar 10 2020, 07:23 AM

keep falling, will bankrupt or not?

I hope not

U see they throw price like crazy...
To fill up the plane....

and also u see report AA cancel around 600 flights..
Even higher than Malindo or MAS...

https://samchui.com/2020/03/09/top-10-airli...ed-by-covid-19/

AA not on the list still got hope!

perhaps because AA only suspended a small number of destination flights

Hmm like not so logic only..
Maybe they didn't detect yet 😂

Some news about Fuel Hedging :

Air France-KLM Loss 1B,

Hedging price : $65/barrel

https://www.forbes.com/sites/willhorton1/20...s/#35accd3f07b9

AirAsia Hedging price : 60/barrel

https://www.thestar.com.my/business/busines...olitical-shocks

The group is hedging 72.8% of Brent crude oil price at US$60.22 per barrel for the financial year 2020 (FY20) and MIDF Research is of the opinion that AirAsia’s prudent hedging strategy could weather the expected rise in oil prices.

Wah! Airasia panda leh. Hedged cheaper than KLM.....