Fuel hedging for 09

General Lee

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FACTBOX-U.S. airlines fuel hedging positions

Fri May 29, 2009 2:33pm EDT


May 29 (Reuters) - U.S. airlines have hedged the price ofoil to protect themselves from rising fuel costs. In recent quarters, some carriers wrote down millions ofdollars in losses as falling oil prices eroded the value oftheir hedge portfolios. Now, with oil prices creeping higher,carriers are under more pressure to lock in the relatively lowprices. U.S. crude oil future CLc1 traded near $65 a barrel inNew York on Friday, up from $32.40 in December and down from anall-time high above $147 in mid-July.

The following table shows fuel hedging positions asreported by the carriers:AIRLINE PERIOD DETAILS

Delta Air Lines Q2 75 pct hedged; $2.08 projected fuel price per gallon

2009 61 pct hedged; $1.99 projected fuel price per gallon


American Airlines Q2 37 pct hedged atAMR Corp average cap of $2.59/gallon; 33 pct hedged at average floor of $1.99/gallon.

2009 35 pct hedged at average cap of $2.54/gallon; 32 pct hedged at average floor of $1.89/gallon


United Airlines Q2 the company expectsUAL Corp mainline fuel price, including the impact of settled hedges, to be $2.02/gallon


Continental Airlines Q2 35 percent hedged with an average price cap of $3.48/gallon 35 percent hedged with an average price floor of $2.61/gallon


Southwest Airlines 2009 29 percent

US Airways Q2 25 percent hedged with range of $2.03 -$2.08/gallon

2009 18 percent hedged with range of $1.96 -$2.01/gallon


(Reporting by Kyle Peterson, editing by Leslie Gevirtz)



Bye Bye--General Lee
 
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canadflyau

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WAY TO GO CAL!!! 35% hedged with the highest cap and floor. Why why why are we allowing MGT to sink this place at every corner?
 

3ds

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Don't follow the oil/fuel market much, but i thought there are 50 gallons/barrell, which = ~ $100/barrel for most of the hedges listed here. Not that great, it seems, unless I'm missing something.
 

indianboy7

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Don't follow the oil/fuel market much, but i thought there are 50 gallons/barrell, which = ~ $100/barrel for most of the hedges listed here. Not that great, it seems, unless I'm missing something.

The airlines hedge on refined fuel prices (heating oil, if I'm not mistaken, which mirrors jet fuel prices). The cost of this is higher than a barrel of crude oil due to transportation and refining costs....
 

Mike man

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We shouldn't forget that UAL will still lose money on the hedge due to their hub's distance from the oil importing/refining areas.

Wasn't that their excuse last year? What will it be this year?
 

PlaneDrvr

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Don't follow the oil/fuel market much, but i thought there are 50 gallons/barrell, which = ~ $100/barrel for most of the hedges listed here. Not that great, it seems, unless I'm missing something.

A barrel of oil (crude or refined product) is 42 gal.

Just to clarify, hope it helps.

PD
 

contrail67

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We shouldn't forget that UAL will still lose money on the hedge due to their hub's distance from the oil importing/refining areas.

Wasn't that their excuse last year? What will it be this year?
UAL will post a profit only when they want to.
 
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