QUOTE(staind @ Jul 6 2020, 10:07 PM)
They still have around -rm982mil fuel hedge not realised.
Report page 17.
This was from Dec QR report from AirAsia...
This was yesterday..
Much easier to see, when one put this together. The focus, imo, should be the fuel contracts due in less than one year.....
The fuel contract due one year in Dec was about 9 million barrels.
Yesterday the contract due one year has shrunk to 3.1 million barrels.
So they settled and cut loss.... according to their report they loss 110 million.
Based on MARCH 31st fair market prices, these fuel contract due less than 1 year,
was carrying a loss of 794.9 million.
Now this part does the reader no good. According to the notes, page 30, AirAsia said the following...
QUOTE
... these challenging times, we have sought payment deferrals from our suppliers and lenders. We have also restructured a major portion of the fuel hedges with our supportive counter parties and are still in process of restructuring the remaining exposure. This will help deal with the excess of hedged volume against expected fuel consumption post-COVID-19 and reduce the hedging losses if fuel price remains at today’s prices.
process of restructuring the remaining exposure.... lol ... process of cutting loss la....
Therefore, the max loss on fuel hedges on the next quarter should be less than 794.9 million....
We can guestimate a little on them Singapore jet fuel prices....
Recent article...
https://www.flightglobal.com/airlines/jet-f.../138772.articleThis one part...
QUOTE
In Asia, the picture is one of returning demand and weaker jet fuel production. Jet fuel for barge delivery to Singapore was $2 per barrel higher week on week, at $40.85-41.25, its highest level since mid-March. Four weeks ago, it was assessed at $24.16-24.56.
Jet fuel has some what recovered a bit...
and then we know from articles like this earlier this year...
https://www.theedgemarkets.com/article/aira...ing-fuel-pricesQUOTE
“We currently hedge about 12% to 14% of our fuel needs, at US$69 per barrel, down from 60%-70% for our 2017 fuel needs when the fuel prices were low. We would love to hedge more, but the problem now is that I am still not very comfortable with where the fuel prices are heading. There are still many uncertainties,” he said.
Therefor, the paper losses from these fuel hedges is gonna be big... but how much did they cut since March 31st? Well, I have a feeling it should not be more than 795 million...
..... my opinion remains... they are way too reckless on their hedging. In fact, in my opinion, they are gambling far too big with these hedges.And worst still, AirAsia has a history of losing millions and millions with their hedges and they are still doing it.
Google AirAsia hedging losses and you can see article like this...
https://www.theedgemarkets.com/article/aira...all-fuel-hedgesQUOTE
The airline’s second consecutive quarterly loss came mainly after unwinding its fuel and interest rate swap (IRS) derivative structures in FY2008, totalling RM640.9 million, which is being treated as an exceptional item in its books.When AirAsia unwound its hedge position in the third quarter last year, Fernandes said swift action by management has saved a significant amount of money. He added that at US$50 per barrel, it would have to incur a total of US$481 million of fuel-hedging losses.
Never learn from its mistakes, no?
This post has been edited by Boon3: Jul 7 2020, 01:44 PM 
May 28 2020, 04:41 PM
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