Originally Posted by
Cogf16
Lets be fair here. Did ANYONE think oil/fuel prices would drop this low????? Look at it this way, we'll lose a billion or so in hedges but gain several billion in savings on the spot fuel prices we're paying now. Sounds like cheap insurance to me. Kinda what hedging is all about I'd say. J Graham said for every penny fuel prices change, its a 40 million difference. I think we're paying about $1.30 less a gallon than last November, which equates to about 5 billion less annually! And it has nothing to do with sick leave abuse(but you already knew that)
Does everything have to be so negative and confrontational? And no, I'm not a company shill, just tired of the same old rhetoric. Think I'll leave again
Signed,
A no voter and big supporter of the current path.
Cog, I understand what you're saying. I think there is also an argument that over the years that we have lost many Billions due to our company's fuel hedging strategy. When compared to companies that do not hedge I would say that the advantage appears to be relatively small compared to the large loss that we incurred over time. In other words if our competitors are largely not hedging if oil goes up we all share the pain relatively equally.