China Eastern books huge fuel-hedging loss
By Wang Ying | China Daily | Updated: 2009-01-13 07:43
SHANGHAI: China's third largest carrier China Eastern Airlines yesterday reported a paper loss of 6.2 billion yuan on fuel-hedging contracts throughout last year.
China Eastern Airlines' actual fuel-hedging loss ballooned from $420,000 to $14.15 million from last November to December, up 3,269 percent month-on-month.
The huge loss comes directly from the sharp fall of crude oil futures prices over the past six months. Crude oil delivery for February dropped as much as 72.45 percent ending at $40.5 a barrel traded in New York, from an all-time high of $147.27.
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