Qantas braces itself financially for coming year

first_imgQantas will continue to hedge itself against market fluctuations in the coming financial year, it announced in its recent report, with fuel, foreign exchange and aircraft capital all largely braced for 2010.In financial year 2009 Qantas was “highly hedged against record fuel prices” and it appears the Australian carrier will once more be doing the same in 2010, with 80% of its fuel hedged at a worst case price of US$89 per barrel.“We are also keeping a close watch on oil and fuel prices. While well below the record levels seen in 2008, they remain volatile and are trending upwards,” said Alan Joyce, Qantas CEO.For the full financial year, total fuel expenditure came in at AU$3.6 billion, 27% lower than the 2007/08 financial year, or a savings of AU$99 million, due to hedged into plane fuel prices being offset by favourable foreign exchange movements.Additionally, Qantas has also hedged its foreign exchange risks, with 51% hedged at a worst case price of around AUD0.78.Lastly, aircraft capital expenditure is 89% hedged until June 2011 at a worst case rate of around AUD0.77. Source = e-Travel Blackboard: W.X <a href=”” target=”_blank”><img src=”;cb=INSERT_RANDOM_NUMBER_HERE&amp;n=a5c63036″ border=”0″ alt=””></a>last_img