Lions-yes. But let me give an example to make it clearer.
We need 100 barrels of oil - we have hedged 50 at $80. So no matter what we are paying $4,000 for half our oil. (50 x $80)
Now if oil is $20 - we pay $1,000 for the other 50 barrels - total oil bill is $4,000 + $1,000 = $5,000. Now in actual fact, what would happen in this case is that we buy 100 barrels at $20 = $2,000 and lose $3,000 on the hedge ((80-20) x 50 = $60 x 50 = $3,000) Total bill is $2,000 for the oil plus $3,000 for fuel hedge loss = $5,000.
If oil is $80 a barrel, no hedge loss, but we pay 100 x $80 = $8,000 fuel bill
So lower oil price, bigger hedge loss, is better overall for us (given we are stuck with an ill thought out hedging legacy)