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Cathay - HKD 109 Fuel Levy on Inbound Flights

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  1. #21

    Join Date
    May 2012
    Posts
    1,186
    Quote Originally Posted by HowardCoombs:
    I'm thick too.

    Why is this a separate "surcharge" instead of just a "hey, here is a bit higher price because we feel like it" ?
    Oil surcharge -> you blame the oil producing countries
    Fare increase -> you blame Cathay

    That's what they are thinking

  2. #22

    Join Date
    Mar 2016
    Posts
    271
    Quote Originally Posted by HK_Katherine:
    An oil future IS a hedge. That's the point.
    Slight correction, it's an instrument. Your reason for buying it determines whether it's a hedge or a gamble.

  3. #23

    Join Date
    Aug 2008
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    猴山
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    23,652
    Original Post Deleted
    Every few years there is s change in 'strategy' at Cathay. Usually it seems to happen after swings on fuel prices.

    Cathay Pacific 2015 profit: USD1 billion fuel hedging loss obscures strategic weaknesses | CAPA - Centre for Aviation


    Also not all airlines hedge
    Delta to Stop Hedging Fuel Costs (AAL, DAL) | Investopedia