Welcome to Flightinfo.com

  • Register now and join the discussion
  • Friendliest aviation Ccmmunity on the web
  • Modern site for PC's, Phones, Tablets - no 3rd party apps required
  • Ask questions, help others, promote aviation
  • Share the passion for aviation
  • Invite everyone to Flightinfo.com and let's have fun

UAL Loses $520 mil on fuel hedges

Welcome to Flightinfo.com

  • Register now and join the discussion
  • Modern secure site, no 3rd party apps required
  • Invite your friends
  • Share the passion of aviation
  • Friendliest aviation community on the web
trading 101 would tell you to cover that position with a short as soon as the mkt fell. They are so stupid it is embarassing.
 
How in the name of Raptor Jesus is Tilton still at the helm at UAL?

If I were to venture a guess Walter, it's because his exit contract is likely way to expensive for UAL to pay right now.

I'm sure a UAL person will chime in with the data, but I'm sure if he's terminated, he walks with millions...not a popular thing for UAL to do right now...
 
after the govt bail out of Lehamans and AIG, I would expect the govt will bail out any legacy airline before they just go way!!! Becuase according to the Govt companies that are too big...cannot fail and they will step in to help out any legacy stay afloat.

I would not bet on it. If say United failed...the rest of the industry would have huge gains. They would have all thier passengers, incresed loads, then the price of tickets go up helping the bottom line.

I do not see the government keeping a carrier around that is just not needed. We have too empty seats flying around. Cut 1/4 of those out of the mix and then you are flying close to full making $$$.

Losing 1 big or even 2 airlines (legacy size or SWA size) will not kill this industry...it will help it
 
What RedDogC130 said....

At the rate Wall Street is imploding, there may not be any money left in the Fed's coffers to bail out an airline or six! :crying:
 
Frankly, I don't see why people believe the government will even bail out an airline. I always hear, "They're too big they won't let them fail." I don't know who "they" are to stop it.

Remember, Eastern and Pan Am were not exactly small players either. Someone is going to eat it, and its not the purview of government to stop it.
 
Don't worry United, the U.S. government will bail you out.
 
trading 101 would tell you to cover that position with a short as soon as the mkt fell. They are so stupid it is embarassing.

Raoul,

This isn't directed at you, but the premise of UAL losing 520mil on hedges is more about GAAP accounting than actual losses.

SWA pulled this on us when they cyphered our "profit" sharing last year. The gains from hedges - even if UNREALIZED - must be accounted for. Since losses are the same, UAL will have to show that too. SWA may show a loss in the coming quarters because they had to show a GAIN during the oil run-up. Now, they have to show the "perceived" loss even though they never made a DIME on those positions.

-fate

Oh.... and as for the govt caring about legacies... you only have to look as far as the rejected ATSB loan application to see how far the govt will back legacies.
 

Latest resources

Back
Top