MAS Suffers A Whopping 640 Million In Fuel Hedging Losses!!!

Posted a couple of months back: And What About MAS Oil Hedges?

• As pointed out by AhBeng in recent AirAsia discussions (see AirAsia Reported Massive Losses Again!!, Comments On AirAsia Exceptional Losses and Reply To Comments On AirAsia Exceptional Losses ) Malaysia Airlines (MAS) only announced its realised hedges and on Star Business today, the following article was published.

In that Star Business article..

• The national carrier does not book any losses as it does not adopt the mark-to-market practice, which essentially means assigning a value to a position held in a financial instrument based on current market price.

And in today's earnings, MAS adopts the mark-to-market practice.

From the company earnings notes.

• The Group recorded an operating loss for the quarter of RM137.9 million from a profit of RM66.3 million mainly due to a lower operating revenue in line with declining trend in global travel and cargo movements resulting from the current economic downturn. The Group recorded a loss after tax for the quarter of RM694.8 million from a profit of RM46.6 million after including derivative loss of RM557.0 million with the early adoption of FRS 139.