Air China has seen its jet fuel hedge slump to almost half a billion
dollars in the red, the Chinese airline warned shareholders in a notice
published on the Hong Kong Stock Exchange after markets closed Friday.
The company, one of the big three national airlines in China, admitted
that it bought and sold oil options at what turned out to be the top of the
market. The company had the misfortune of tying up a substantial position in
oil derivatives in July — when, as it turned out, oil prices hit an historic
peak before collapsing by more than 60% in the next four months.