After an unpleasant experience with hedging jet fuel costs (this is rom a June 2nd, 2016 Forbes article, here: “Delta Airlines’ new CEO Ed Bastian admits glibly “We’ve lost over the last eight years about $4 billion cumulatively on oil hedges” in a recent Bloomberg interview. When asked if he would consider hedging, or locking in oil prices in the future, he states “I don’t get paid to make those kinds of bets.””),
This time, Delta is increasing fares and trimming flights to help offset increasing fuel prices… Here is Alison Sider, Wall Street Journal:
”Delta and other airlines have retreated from using derivatives to hedge against future fuel-price swings. The company said in June that it didn’t plan to start hedging again. Delta owns a jet fuel refinery that it says helps insulate its operations from rising prices.
“Fuel prices where they are today at roughly $75 Brent does not scare us,” Mr. Bastian said on Thursday. Jet fuel prices have climbed along with the global oil benchmark, which is up by more than half from a year ago.”
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