In this news story about airline fuel hedging positions, the following appears:
http://biz.yahoo.com/rb/080313/airlines_fuel.html?.v=2
Won't insulate AA from $110/bbl oil, but it is a rare accomplishment for management.
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Government filings show that most major airlines have left themselves more exposed to high oil prices than they were a year ago.
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One exception to lower jet fuel hedges is American Airlines. On January 16, the world's largest carrier said it had hedged 24 percent of its estimated fuel needs for 2008. As of December 31, 2006, the company had hedged was just 14 percent of its anticipated 2007 fuel needs.
American Airlines said it has been rebuilding its fuel hedging program over the past couple years as it recovered from steep losses and typically hedges about 30 percent of its fuel needs.
Airlines typically layer in hedges over the course of the year, so the total percentage of annual fuel consumption hedged may grow by year end.
American's fuel hedging program "is not designed to try to speculate on the price of oil/fuel," spokesman Andy Backover said. "The purpose is to dampen the volatility of fuel prices."
http://biz.yahoo.com/rb/080313/airlines_fuel.html?.v=2
Won't insulate AA from $110/bbl oil, but it is a rare accomplishment for management.