Weee.... when did I post 1bn number? U must be mistaking me for someone else...

***I asked for the numbers...

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB

I thought the Hedges were supposed to smooth the profits...but what do we get...amplification? KQ should upload these secretive Hedge documents to enable shareholders check out any Madoffish clauses...we now know that these Anglo-Saxon derivatives brought the GFC due to greed and should be avoided like the plague..look at what they'v now done to KQ shareholders!!

Playing the stock market without insider info...is like buying a cow in the moonlight.

mcreggae: Umelipwa to finish me?

Hedges are to 'protect' or 'set' prices not to smooth profits (though that might a secondary effect).

*** Investors need more info on the hedges. This BS of 'hiding' info hurts a lot. We should make noise during the AGM.

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB

I stand by it... coz the 'loss' has been taken in the Income Statement (as on 31 Mar 2009). Any increase in the price of oil will 'increase' the UNREALIZED PROFIT (essentially decrease the unrealized loss)... note all the pari passus... with higher oil prices (above $50)... KQ can writeback the losses. The real proof is when the forwards are settled.

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB

I have never seen a friend of mine so happy like today!Keep it up man,but wembe ni ule ule.After every bubble there must be a burst.@VVS.....Let him enjoy himself,and let us hope for the best.

I never follow my dreams,instead I hunt them down and beat them up into submission...!

My favourite topic..I am surprised many of you did not know about KQ's strategy of Hedging against oil prices and on this note do they have guys who trade on Futures???...

Last time i asked this if Kq is making money..i got a dress down with laughable responses..now maybe Myks,Jaymiggy and Impunity can explain and curiously they are silent..???

With that said what most of us need to realise is that airlines merely seek to BREAK-EVEN with fuel hedges and caps not to PROFIT from them hence the shock from many of you...bsically it's an attempt to achieve a fixed cost in a volatile area.

Despite all this airlines favour hedging for fuel as an operational strategy,if one can factor 60 -70 % of fuel price risk then that is a huge advantage on a risk/return basis even if you end up paying 10-20% more if the market moves against you.

I think 20% overpayment is better than 60-70% shock price increase.





Heart is what separates the good from the great - Micheal Jordan.

Future profit will improve since the hedge loss has been captured. the strategy is to buy for long term when the price has stablised. The loss will not affect the cashflow. This hedging biz is tough to understand.

'men will have to give account on the day of judgment for every careless word they have spoken' (Mat 12:36).
'set a guard over my mouth and keep watch over the door of my lips' (Ps 141:3).

From the results I think KQ has made a profit!!! When you place a provsion of 'unrealized losses' of 7.5B and declare a loss of 5.66B,we are talking of a profit of about Kshs 1.8B

The results next year will be so good I suspect!!!

It's a buy after the price hits rock bottom!!!

Book closure for dividend payment is 30th Sept. 2009!!!!!...payment around 23rd Oct.

The chief value of money lies in the fact that one lives in a world in which it is overestimated.

Impunity....You are the kind of fellow who blieves that the employer is your mother!!..and who told u I work there?
Rick,u seem to confuse issues here,who fought you about KQ making money or not? I told u KQ doesnt operate a 777-300ER as u like to think,and al stand by it till the day I die...

Gravity; Its not just the law,its reality.

@mc Reggae,

Like i had put in my earlier mail,if you remove the cost of fuel hedge for the post balnce sheet period,(kshs. 7.5b),you will find that KQ has actually made a profit of Kshs. 1.8b. We thus expect the company to post very good results in the year 09-10