$774 million worth of fuel hedging losses for the first 2 quarters?

[Lucky777]

I'm not sure i get this, it sounds as if we're still in the hedging game, and in a big way even though i thought that Delta had closed out all of its fuel hedging positions at the end of 2015....? This seems like an enormous loss for only 2 quarters and the company isn't really saying much regarding this although they did recently announce that the 2nd quarter operating margin would be closer to 17% versus the 21-23% they had earlier forecast, which i would have to assume is due in no small part to the hedging losses. The fuel hedging strategy seems to be the achilles heel time and again and i'm just wondering when/if the hedging contracts will actually be COMPLETELY off the books.
 
http://www.investopedia.com/articles/investing/032116/delta-stop-hedging-fuel-costs-aal-dal.asp
 
http://www.investopedia.com/articles/investing/032116/delta-stop-hedging-fuel-costs-aal-dal.asp
 

 

[Lucky777]

http://www.csmonitor.com/Business/2016/0706/Delta-other-airlines-lose-a-big-bet-on-fuel-prices

 

[Kev3188]

Good questions all around! I thought we were done hedging as well?

 

[topDawg]

Good questions all around! I thought we were done hedging as well?

 
We are. These are still on the books from before. 
 
Currently no new hedges are being signed. 

 

[Kev3188]

Aha. Gracias.

 

[Lucky777]

 
We are. These are still on the books from before. 
 
Currently no new hedges are being signed. 

 Thanks for the info.....i'm still curious as to how far out the hedges that were previously signed run thru before the book is clear.

 

[topDawg]

 Thanks for the info.....i'm still curious as to how far out the hedges that were previously signed run thru before the book is clear.

 
I *believe* they should be done at worst by the end of the year. 

 

[Kev3188]

According to today's 8K filing, there aren't any more remaining for 2016...

 

[WeAAsles]

http://finance.yahoo.com/news/delta-air-lines-announces-june-110000487.html

 

[FWAAA]

The 10-K disclosed that DL has some hedge contracts that will settle in 2017 but they don't appear to be large positions.