yep I heard that too.
Hedges take a good credit rating plus a lot of cash. Get your self in trouble and the hole gets deeper and deeper.
But worse, the focus on the QUARTERLY report rather than the long view has meant that management of most miss managed companies don't care about things in the future (like fuel hedges) when they can pump up the quarterly report a few more dollars right now and get some bonuses TODAY, rather than making the company healthy in the future.
Don cAArty was emblamatic of that at American. Play stupid short term games, to get the stock price up this week, and mortgage the future. But he certainly made HIMSELF rich doing it, even if he chewed up 20 billion in equity at AA in the process for his 20 million in bonuses.
Cheers
Wino