{"id":8292,"date":"2008-08-05T00:00:00","date_gmt":"2008-08-05T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"fuel-hedges-could-waste-airlines-money","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/08\/2008\/fuel-hedges-could-waste-airlines-money.html","title":{"rendered":"Fuel hedges could waste airlines&#8217; money"},"content":{"rendered":"<p>Reuters UK &#8211; U.S. airlines are cheering a steep decline in the price of jet fuel since mid-July, when crude oil began a nearly $27-per-barrel descent, but that good news may come with a slight sting for carriers that locked in fuel prices when oil was at its peak.       <\/p>\n<p>The risk is that oil may drift below the current price airlines guaranteed with hedging contracts, which are usually options. If that happens, the hedges carriers purchased could be a waste of money.<\/p>\n<p>Worse yet, it is possible some airlines could be committed to paying more for their fuel than market prices.<\/p>\n<p>&quot;Given some of the hedging mechanisms they are using, they are going to be subject to significant losses on those portfolios. We&#8217;ve never seen such volatility on oil prices,&quot; said Brian Nelson, equity analyst at Morningstar.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" height=\"1\" border=\"0\" width=\"1\" src=\"http:\/\/feeds.feedburner.com\/~r\/reuters\/UKFundsNews\/~4\/356106318\" \/><br \/>  <strong><a target=\"_blank\" href=\"http:\/\/www.hedgeco.net\/news\/news_land.php?i=http:\/\/feeds.feedburner.com\/~r\/reuters\/UKFundsNews\/~3\/356106318\/idUKARO52652420080805\">Read Complete Article<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Reuters UK &#8211; U.S. airlines are cheering a steep decline in the price of jet fuel since mid-July, when crude oil began a nearly $27-per-barrel descent, but that good news may come with a slight sting for carriers that locked [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[84,200,509,1700,1815,117,1939,1940,417,1031,236,547],"class_list":["post-8292","post","type-post","status-publish","format-standard","hentry","category-syndicated","tag-beta","tag-exchange-trading","tag-federal-reserve","tag-harvard-university","tag-inflated-prices","tag-investment-arm","tag-letup","tag-severe-weather","tag-staffers","tag-star-ratings","tag-trillion","tag-wb"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/8292","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=8292"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/8292\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=8292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=8292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=8292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}