Airlines Hedging Oil at $147.90/BL?

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.

Comments

[jpelt:]

Typical corp.propaganda "don't do what i do."They do this to their employees too.....

2008 Sep 18 11:53 AM

[bigmoney:]

who would have guessed? At the time, there were articles predicting $300 oil.

2008 Sep 18 04:05 PM

[Syracuse:]

We need a web site to just discourage airlines, period. They think they are untouchable and above common sense.

2008 Sep 18 04:39 PM

[AA Employee:]

I know what the airlines are about. They want to lose money so they don't have to give the employees any benifits or raises. But the top dawgs got $285,000,000.00 in bonuses last year. Thats right six zeroes. Bonuses are supposed to be for good performance not for breaking the workers backs. I gave up a week of vacation, 5 sick days,5 holidays and 17% paycut to keep afloat. We are negotiating right now and the company does not want to give us a dime raise and they want to take away our retiree medical plan. Don'figure does it. Do not fly American Airlines..

2008 Sep 22 03:26 PM