For AirAsia, Fuel Hedging Is But A Game!

Posted earlier this morning: A Quick Look At AirAsia's Latest Earnings

I was interested to read more in what the local media had to say about AirAsia. The one that caught my attention was posted on the Edge Financial Daily. AirAsia posts better-than-expected 2Q results.

The last few passages caught my attention.

• ...... As to whether AirAsia would hedge its fuel given the present level of US$70 per barrel, Fernandes said: “No, there’s too much volatility.”
  
  “We spoke with two major oil companies and they said that supply and demand does not match the current price. There’s so much volatility and we don’t want to play in that game yet.”
  
  For the second quarter, AirAsia wrote back some RM18 million to RM20 million as banks released collaterals AirAsia had deposited as security against its hedges. The figure also included savings from lower handling fees charged by airports....

WOW!

For AirAsia, hedging is a game???????

Holy cow!

Now why is such a statement important.

For some, like me, what the boss says reflects greatly on the company itself and if the reporter for this article did not quote what the boss said, fuel hedging is considered to be a game for AirAsia!!!!!

How now my dearest moo moo cow? Like what you see?