AIR - Air NZ.

[Leftfield]

Oil down some 30% may help AIR a little?? All depends on AIR's hedging I guess. (not that I hold AIR - just watching with interest.)

[winner69]

QAN now down ~ 10%, Australian market crashing, down 5.3% and its only been open for less than an hour

Please don’t use the word crash on airline threads ...you’d feel really bad if a plane crashed today.

[Beagle]

I wasn't referring to airlines or any specific airline mate...but I know you are superstitious about these things so will try and be sensitive to your idiosyncrasies (thank goodness for spell checker with that last word)

Interesting article behind the paywall on N.Z. Herald just released by well respected aviation sector journalist Grant Bradley
https://www.nzherald.co.nz/business/...ectid=12314920
Copyright limits me to one or two sentences as I understand it from what Vince has mentioned before.

Best sentence is this which gives a very interesting insight into the degree of demand collapse. "Last week one carrier was reporting 50 per cent no-shows; passengers not turning up. While those are tickets sold, it illustrates the fear of flying".

If a whopping 50% of people are not turning up when they have already paid for their tickets it begs the question how new sales are going

[Beagle]

Oil down some 30% may help AIR a little?? All depends on AIR's hedging I guess. (not that I hold AIR - just watching with interest.)

AIR has about 80 per cent of its fuel hedged at between $54 and $64 a barrel for the rest of the FY20 year.

[stoploss]

AIR has about 80 per cent of its fuel hedged at between $54 and $64 a barrel for the rest of the FY20 year.

Was that 80 % of what they thought they would use pre virus ? If you haven't adjusted that they will effectively be more than 100 % hedged ....

[BlackPeter]

Was that 80 % of what they thought they would use pre virus ? If you haven't adjusted that they will effectively be more than 100 % hedged ....

Good point. Might call for more trouble .

[Beagle]

Was that 80 % of what they thought they would use pre virus ? If you haven't adjusted that they will effectively be more than 100 % hedged ....

Good point, yes it was. Hmmm

[winner69]

AIR has about 80 per cent of its fuel hedged at between $54 and $64 a barrel for the rest of the FY20 year.

That's good isn't it?

[Baa_Baa]

Will be helpful longterm (post hedging period). But jet fuel prices dropping well below hedging rates will result in massive mark to market write downs at 30 June.

Can't they just buy at market when under the hedge price and right-off the hedge premium? Either way, there's big saving in fuel costs from reduced flights.

[Snow Leopard]

Can't they just buy at market when under the hedge price and right-off the hedge premium? ....

And be sued for breach of contract.