Getting Hurt by Falling Oil Prices

Started by MountainDon, October 31, 2008, 09:39:19 AM

Previous topic - Next topic

0 Members and 1 Guest are viewing this topic.

MountainDon

At least a couple of airlines are getting hurt by falling oil prices. Southwest and United were two of many firms that bought into hedges against rising fuel prices and locked in price guarantees back in summer and early fall. Now that oil has sunk they are paying more than the street price. Ditto with many other companies.

Hedges work two ways.
Just because something has been done and has not failed, doesn't mean it is good design.