Air China hedging leads to large losses
Air China has said that losses in fuel hedging contracts have contributed to an overall third quarter deficit of CNY1.94 billion (US$284 million), Xinhua has reported. The fuel hedging loss amounted to a reported CNY961 million and combined with weakening demand to hit the carrier’s results.
In a statement to the Shanghai Stock Exchange today, the company said it signed the contracts in July with the longest term running until 2011 to mitigate the risks of future possible rises in fuel price.
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