Its not actually a paper loss in this case. It is a actual loss dealing with fuel hedges. Other airlines are also taking losses on fuel hedges. Any fuel you have hedged above 75 a barrel is now underwater and a liability for accounting purposes. A paper loss would be something like a writedown in good will value of the airline based on declining stock value. Hedges are a two way street. You make money when fuel goes up and you lose money when fuel goes down. Its real not paper money.