The issue on the fuel hedging depends on the nature of the contracts. If they are options to buy at $129 or whatever, they do not have to take up the options, as they just fall away unused (though there would be a cost to writing the option in the first place). On the other hand, if they are forward contracts whereby the airline is contracted to take delivery of the oil, they are screwed, unless they can sell those contracts onto another party, or otherwise sell their way out of such deals.