Showing posts with label DAL. Show all posts
Showing posts with label DAL. Show all posts

Wednesday, January 21, 2009

Airline Sector Getting Slaughtered On Busted Hedges

The entire airline space today was getting whacked in early trading. Delta was down over 10%, United was down roughly 9%, and American was down over 20% after cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 last two announced weak earnings with cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 major culprits given were a sharp drop in capacity and load factors on cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 revenue side, and bad fuel hedging on cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 cost side. American is being punished cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 most as it noted it still has 45% of its Q1 fuel hedged at $2.58/gallon or $108/barrel. United on cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r hand stated that it's mark-to-market loss on fuel hedges gone wrong is $566 million, and that its hedging counterparties held $965 million in cash deposits.

Tomorrow we will see how cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 two biggest hedgers in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 space, Southwest and JetBlue, performed in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 fourth quarter, when cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y both announce results before market, and both have a conference call at 11:30 am. As we noted previously, we are concerned mostly about Southwest which we think may be punished for cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365ir prior significant hedging position. Sphere: Related Content