TOP TO BOTTOM:Analysts said that while airlines face pressure due to reduced fuel surcharges and hedging losses, their bottom lines benefit from lower fuel costs
Date: Jan 25, 2016
By: Ted Chen / Staff reporter
EVA Airways Corp (長榮航空) on Friday last week reported NT$5.48 billion (US$162.59 million) in unrealized losses from its fuel hedging positions as of Jan. 15, an increase of NT$1.93 billion from the end of last year.
The unrealized losses are to offset benefits from falling international crude oil prices, as procurement costs have been locked in for the next two years, the nation’s second-largest carrier said in a filing with the Taiwan Stock Exchange.
EVA Airways said global oil prices have been declining at a pace that exceeded the company’s expectations, leading to unrealized losses from ongoing hedging contracts. [FULL STORY]