Thursday
Sep182008
Airlines Hedging Oil at $147.90/BBL?
Thursday, September 18, 2008 at 05:42AM
Our friends in the airline industry made a big deal about oil speculation when oil prices were flirting with $150.
They even encouraged their customers to sign up for a website to stop oil speculation.
Now it appears that the anti-speculator airline industry decided to do some hedging to mitigate the damage that rising fuel costs were causing to their bottom line. Sadly, United Airlines said yesterday that its fuel hedges are under water by US$544 million.
Maybe we need a website to discourage airlines from oil hedging.
They even encouraged their customers to sign up for a website to stop oil speculation.
Now it appears that the anti-speculator airline industry decided to do some hedging to mitigate the damage that rising fuel costs were causing to their bottom line. Sadly, United Airlines said yesterday that its fuel hedges are under water by US$544 million.
Maybe we need a website to discourage airlines from oil hedging.
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