As jet fuel prices plummet, airlines pay the price

摘要

Declining fuel prices are not good news for all buyers—especially those that hedged fuel contracts with the expectation fuel prices would stay high. United Airlines reported a third-quarter loss of more than 779 million saying the rapid decline in jet fuel prices at the end of the quarter cost the company more than 500 million. According to the earnings statement for UAL Corp., United's holding company, recorded "519 million in non-cash, net mark-to-market losses on its fuel hedge contracts, as a result of the drop in oil prices at the end of the quarter."