Any "Latest & Greatest" about Delta?
03-23-2015 | 07:31 AM
Gets Weekends Off
Joined: Dec 2009
Posts: 1,898
Likes: 0
From: Stay THIRSTY, my friends!
Beginning April 1, FA training pay goes to 4:45. Any chance we'll get a 'me too' on that one??
03-23-2015 | 07:54 AM
Gets Weekends Off
Joined: Jan 2007
Posts: 385
Likes: 0
From: 5-9 block, kill removing
03-23-2015 | 07:57 AM
Gets Weekends Off
Joined: Dec 2009
Posts: 1,898
Likes: 0
From: Stay THIRSTY, my friends!
03-23-2015 | 08:50 AM
Gets Weekends Off
Joined: Mar 2008
Posts: 4,105
Likes: 100
03-23-2015 | 09:36 AM
veut gagner à la loterie
Joined: Apr 2008
Posts: 23,286
Likes: 0
From: Light Chop
03-23-2015 | 09:39 AM
Runs with scissors
Joined: Dec 2009
Posts: 7,847
Likes: 0
From: Going to hell in a bucket, but enjoying the ride .
03-23-2015 | 09:54 AM
Doesn't Get Weekends Off
Joined: Jun 2007
Posts: 2,599
Likes: 2
You just don't lock in prices, someone is on the opposite end of the trade. At $20bbl, Delta would have to buy call options, and then could lose billions when the price of oil doesn't go up enough. The best way to hedge is to not do it at all. Hedging is no different than putting $1 billion on black at a roulette table in Vegas.
I think over the long term a fuel hedging strategy will even out the highs and lows of fuel costs making it easier to predict costs. You won't always be on the winning or losing end of the deal, but on average you will be just as well off as someone who has not hedged and you will have a more predictable number for cost estimates.
03-23-2015 | 10:01 AM
:-)
Joined: Feb 2007
Posts: 7,339
Likes: 1
It's not quite like routlette.
I think over the long term a fuel hedging strategy will even out the highs and lows of fuel costs making it easier to predict costs. You won't always be on the winning or losing end of the deal, but on average you will be just as well off as someone who has not hedged and you will have a more predictable number for cost estimates.
I think over the long term a fuel hedging strategy will even out the highs and lows of fuel costs making it easier to predict costs. You won't always be on the winning or losing end of the deal, but on average you will be just as well off as someone who has not hedged and you will have a more predictable number for cost estimates.
03-23-2015 | 10:12 AM
Gets Weekends Off
Joined: Dec 2014
Posts: 1,184
Likes: 0
Not hedging has been Dougie's strategy, and right now he looks like a genius. But what if the price goes up? It's not really gambling, but more like insurance. I have no problem with it personally. It's just a cost of doing business when you spend the kinds of money we do on fuel. Sometimes you are the windshield, sometimes you're the bug. We own a refinery. We are on the other side of that table now.
03-23-2015 | 10:14 AM
Doesn't Get Weekends Off
Joined: Jun 2007
Posts: 2,599
Likes: 2
Storage issues are going to be what runs prices down to the $20's. Most forecasts have oil at $35 in June. Even with all the idled rigs, capacity is still increasing in the U.S. as companies are pumping as fast as they can to try and get it at $45 to pay debt and avoid bankruptcy. The worst is really yet to come in the U.S. oil industry.
Thread
Thread Starter
Forum
Replies
Last Post
