Yup. As I said before, hedging without some degree of certainty of supply is really no different than day trading or gambling. Shots in the dark.
Better to keep the money in capital reserves and use it to ride out the waves; at least you have SOME idea of the value of your investment.
And as CR said adjust your prices (using capital reserves as a buffer for the lag time between the time the ticket is sold and the flight is flown--taking out when things go up and putting in when things go down) to reflect costs of the operation.
Futures markets only work when you have SOME idea of what the future might hold. This hasn't proven true in fuel.
The reasons we have these bubbles and staggering paper losses is folks gamble with OTHER people's money. Learned that lesson as a kid early in life from my grandmother while playing poker. NEVER gamble with someone else's money. It's bad luck.