Fuel is purchased in dollars and therefore I don't think you can look at the fuel hedge values in exclusivity, not without also knowing the hedge rate for dollar currency that each airline has. Given that Flybe are in the middle of an extensive amount of change and turnaround, it's perhaps no bad thing to be well hedged and know the upfront costs for the coming year, especially given what's happened around investor confidence since they came to market.
Just that it seems to of taken forever to release the results!
Hi realistic8, you say below , will be interesting to see the belated results???? can you just clear up what you mean by this. cheers
Some interesting points raised. One cannot argue with the fuel hedging policy as its there is Black and White. Whilst Easyjet and other large carriers will get better deals due to there volume you cant help but think once again Flybe have made an error in there hedging policy. Now having purchased so much in advance if we see a continuous fall in oil prices they cannot take advantage as much as other carriers who may of gambled and not hedged quite so much in advance - sure is a tricky to predict however, but with fuel being the largest single cost to an airline its a crucial part of the business to get right! Due to Flybe operating routes that no body wants too that does indeed mean that they do not really compete with the big two (Easyjet & Ryanair), when they do try to compete as proved in the past couple of years the results are clearly not good, so avoiding competition is a good thing! The only downside is the market size and level of growth that may or may not be there in the new regional routes - only time will tell on that I guess. Will be interesting to see the belated results, I presume they will again ensure that there are plenty of good points to report, and one would expect that all the cost saving measures have now taken place that things will look alot better than 12 months ago. There still seems a real lack of confidence behind the shares, long term sustained growth and success would surely change that but it still seems a risky investment just at the moment.
MickTKipper… alias Mechanical Trader,alias Mike740 has been spouting the same rubbish over most forums. Best ignore him, any investor in Flybe will be aware of the great attention paid to cost cutting. We now run the most economical prop planes available and do not even compete with EZJ. As Saad said "If Flybe was not here one would need to invent It !" Great buy at these prices and just 13 days to half year results.
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