Fuel Hedging Can Hurt

LCT Magazine
Posted on September 19, 2008
How is it that airlines are losing money now that fuel prices are dropping? Some have set up "hedging" deals, which means they locked in fuel purchases at let's say $110 a barrel and then it dropped to nearly $90 a barrel, even though it had gotten up to $140 a barrel not long ago. There are a few large operators that have set up hedging fuel programs and may also be regretting the seesaw ride fuel prices are taking them on these days.

Related Topics: breaking news, Fleet Vehicles

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