OUTLOOK Uncertainty in economic conditions persists exacerbated by concerns about China's slowing economy, which have led to weakening emerging market currencies and volatility in stock markets The outlook for both passenger and cargo traffic is cautious Yields remain under pressure in the face of capacity additions from other airlines. Advance passenger bookings for the october-December quarter are positive, but mainly bolstered by promotional activities Fuel prices remain range-bound. For the second half of the financial year. the Group is 50.7% hedged at a weighted average price of USD93 per barrel See Note 4l. A rising us Dollar will put pressure on operating costs Faced with these challenges, the Group will maintain strict cost discipline and will leverage the various airlines in the Portfolio to remain flexible and nimble in tapping all key market segments. The Group is well placed to retain its competitive edge through the many strategic initiatives that are in place, supported by a strong balance sheet.