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Old 8th Dec 2009, 08:37
  #19 (permalink)  
Doug the Head
 
Join Date: Oct 2003
Location: Hangar 69
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Fuel hedges

I agree with CargoOne.

Guessing the fuel price is like guessing your track miles to some chaotic airport and making a subsequent decent planning.

If you gamble on a shortcut and you deliberately go below profile, then you might get rewarded or you might get screwed.

It's not easy to predict the price of oil (or any other asset or commodity) in these volatile markets for any management. Even major banks and hedge funds get it wrong occasionally.

p.s. the banking fiasco didn't start in 2007, but it started to unwind in 2007. The foundations for this recession were laid many years before that during the low interest rate years that followed the dot.com bubble.
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