Quote:
Originally Posted by Rhys Xanthis
Well Qantas is in a fortunate position in that its airplanes fly all over the world - so some of their fuel bill could be payed in pounds or $US depending where the planes are.
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if they are paying in pounds or USD they still need AUD to buy that currency...
hypothetical, if QF spends 170,000pounds for fuel on a flight from LHR-SIN it's still going to be around $420,000 AUD, that means QF needs $420,000 AUD to buy the UK equivalent to pay for the fuel...if I go to London and buy something on my mastercard its always converted back to AUD.
right now our AUD is buying less pound & USD so its just as expensive....I'd go so far to say that it was better when oil was $120 p/b and the dollar was buying .95 USD.
QF is currently hedged at $112 USD p/b, that = around $160AUD p/b. QF has also hedged its currency exposure, locking in 84% of projected spending in USD for the financial year.
right now its still costing Australian's as much today for a barrel of oil as it was when it was $145 p/b...all thanks to the decline in our AUD.