DL has lost approx. $4B in fuel hedges...
- Thread starter Kev3188
- Start date
Kev3188 said:
Well Kev, with a 'second - to - none' CEO like Big DICK Anderson at the helm for the last 4 of those years, it's not surprising.
BUT, he did go out and buy an old refinery, BUT, then again, he SKIPPED TOWN in the middle of the night.
Speaking of Fuel and Hedging, I wonder how MUCH $$$$$ the Big Dog (company) M A D E, in that area ?
About half of that $4 billion is ancient history - during the 2008-09 price volatility, DL lost about $2 billion on fuel hedges. At the same time, US lost over $1 billion, which nearly plunged US back into Ch 11. The US loss of over $1 billion was proportionately larger than DL's $2 billion in losses during that period.Kev3188 said:
That's when Parker swore off hedging. Bastian flip-flopped a little in the Bloomberg interview; at one point, he said they were done with hedging but at another point, he said that DL would hedge again when it made sense.
The $4 billion sounds massive, but DL paid something like $50-$60 billion for fuel over that eight years.
Delta may have lost $4 billion on ineffective fuel hedges, but pre-merger AA "lost" at least $4 billion on its higher labor costs between 2008 and 2012 when the more efficient labor agreements (lower labor costs) were reached.
AA's labor cost disadvantage was at least $800 million a year compared to DL/NW and UA/CO; AA's disavantage compared to US with its bargain-basement labor costs was more than $1 billion a year.
AA's labor cost disadvantage was at least $800 million a year compared to DL/NW and UA/CO; AA's disavantage compared to US with its bargain-basement labor costs was more than $1 billion a year.
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