MAS : From Profit Quarter To Loss Quarter

If Telekom turned into a forex hedge fund company, then MAS turned into an oil hedge fund company.

MALAYSIAN AIRLINE SYSTEM BHD (MAS) posted a net loss of RM300 million compared to RM38 million net profit in 3Q08, the company announced today. The national carrier also posted an operating loss of RM73 million for the third quarter ended Sept 30, up from the RM421 million loss reported in 2Q09.The loss was attributed to RM202 million in derivative mark-to-market on fuel. It also reported a load factor of 76.7% compared to 65.8% in 2Q09."   ....theedg 

Full news: theedge/businessnews

Previous post dated: 7th August 09: MAS (stock code 3786): an airline or a hedge fund?

Malaysia Airline System posted net profit of RM875.51 million in the second quarter ended June 30, due to a RM1.34 billion fuel hedge gain. MAS announced on Aug 6 the gains were due to a reversal of the hedging losses of RM640 million in the first quarter.  Full news: TheEdge

Is it MAS a transportation company or a hedge fund? Why every time MAS announces its profit/loss, fuel hedging 'always' the main contribution. When there are losses, it is due to loss in fuel hedging. When they make profit, it is due to profit in fuel hedging. Let 's see next quater report. Maybe MAS should be  categorized in financial (fund management) sector rather than transportation (consumer). Can't really blame on MAS on that business model.

Isn't it world's free economy model and financial system grew up so screwed, that a transportation company need to focus on oil speculating rather than 'getting more customer'. One of coming days, a house developer or a construction company need  to go hedging too, probably on cement, steel and timber.

And when exactly our express bus companies will go for fuel hedging too?  :-) Well, they blame on fuel too.

Excuse me for been a layman.