Aviation oil cover large losses Air China report 50%

Every reporter Jiang Yanyan 2009 the first half of the year the continued rise in international oil prices, to the 2008 because crude oil cover to eat up the pain of Air China (601111, closing price of 8.02 yuan) has brought losses hope.　　The company's analysis shows that at the current price calculation, by the end of this year, the company's aviation oil cover will reduce the loss of about 4 billion yuan. In addition, Air China also expects 2009 interim results to grow by more than 50% per cent year-on-year, while the net profit attributable to the parent company was 1.282 billion yuan in the same period a year earlier.　　This is mainly affected by the decrease in the cost of fuel procurement, the growth of domestic air passenger transport market, the implementation of national industry support policy and the loss of fair value of fuel hedging at the end of last year. The closing price of crude oil for US crude oil Futures (WTI) on the New York Mercantile Exchange on June 30, 2009 was 69.89 USD/barrel, up 56.7% from the 44.60 USD/barrel at the closing price of December 31, 2008, Air China announced today.　　has exceeded the company's February 27, 2009 announcement of the range of oil price changes, therefore, the estimation of the fair value of oil hedging in the relevant key parameters are also due to market conditions have changed. Based on the amount and price of the company's contract as at June 30 of this year, and the impact of actual delivery on position in the second half of 2009, the main parameter values used by independent third party assessment agencies to estimate the fair value of the relevant oil cover Air China has made a sensitive judgment: if the price of New York's WTI rose by 40% to 62.44 USD/barrel, 60% to 71.36 USD/barrel, and 80% to 80.28 USD/barrel. The negative value of December 31, 2009 was reduced by 609 million U.S. dollars, 752 million dollars and 854 million U.S. dollars, respectively, from December 31, 2008.　　This means that if oil prices remain at the current 56.7% per cent rise until December 31, Air China insurance will reduce losses of about 4 billion yuan. However, Air China cautions that the sensitivity analysis is based on assumptions based on known market conditions for future market trends, and may be somewhat different from the actual situation of December 31, 2009,　　The result may be inconsistent with the actual value of the fair value of December 31, 2009. It is reported that Air China is currently holding a hedging contract between July 2008, the longest period to 2011, as the contract entered the international oil price in the vicinity of 140 U.S. dollars/barrel of historical highs, coupled with the market generally expected to continue to higher oil prices, resulting in only hedging oil prices rising risk of hedging contracts expensive. In May this year, Air China announced the 2008 oil hedging business Operation details, said that the oil cover one of the causes of Air China's 2008 floating loss of 7.472 billion yuan, which is the main reason for the company's huge losses last year.