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Thread: Fuel Contracts
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Old 22nd Apr 2020, 08:06
  #27 (permalink)  
Asturias56
 
Join Date: Oct 2018
Location: Ferrara
Posts: 8,503
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"AA does not hedge fuel at all, their CEO says it is just not worth it in the long run."

Hedging , as a user, does make sense if

a) you can guarantee you'll need x amount of fuel

b) you can guarantee to make enough money to cover the costs (eg if you have a fixed price , long term contract to crank out widgets)

The problem with airlines is that they can't guarantee their income so it just becomes a bet
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