Uploaded June 2026 | Updated September 2026, 2 hours ago
Cathay Pacific says it does not speculate on oil. But over fifteen years, its fuel hedges produced huge wins, brutal losses, and a net hit of around HK$25 billion. This is how a tool meant to protect an airline became one of its biggest risks.
Narrated by: Tom McKay
instagram.com/tmckay715
youtube.com/@UC8blX3YnHDG9e9_E9KjPK6g
Facebook: facebook.com/behindasian
Instagram: instagram.com/behindasia
Inquiries: behindasian@gmail.com
Brought to you by the Behind Asian Team.
Sources used include Cathay Pacific annual reports, annual results, and investor presentations for fuel hedging gains/losses, fuel consumption, passenger collapse, and the 2020 recapitalisation; HKEX/Cathay announcements for Aviation 2020 and the HK$39 billion rescue package; U.S. EIA and CFTC data for Brent, WTI, and the negative oil price event; Reuters for the 2008 oil spike, Lehman collapse, negative oil price reporting, and airline hedging context; plus Delta, Southwest, and American Airlines annual reports or SEC filings, with S&P Global/Platts and Aviation News Online used for wider airline fuel-hedging comparisons.
Cathay Pacific says it does not speculate on oil. But over fifteen years, its fuel hedges produced huge wins, brutal losses, and a net hit of around HK$25 billion. This is how a tool meant to protect an airline became one of its biggest risks.
Narrated by: Tom McKay
instagram.com/tmckay715
youtube.com/@UC8blX3YnHDG9e9_E9KjPK6g
Facebook: facebook.com/behindasian
Instagram: instagram.com/behindasia
Inquiries: behindasian@gmail.com
Brought to you by the Behind Asian Team.
Sources used include Cathay Pacific annual reports, annual results, and investor presentations for fuel hedging gains/losses, fuel consumption, passenger collapse, and the 2020 recapitalisation; HKEX/Cathay announcements for Aviation 2020 and the HK$39 billion rescue package; U.S. EIA and CFTC data for Brent, WTI, and the negative oil price event; Reuters for the 2008 oil spike, Lehman collapse, negative oil price reporting, and airline hedging context; plus Delta, Southwest, and American Airlines annual reports or SEC filings, with S&P Global/Platts and Aviation News Online used for wider airline fuel-hedging comparisons.
