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View Full Version : More Epic Fail At United: Paying $111 for $98 Fuel



Matt Molnar
2008-09-19, 02:47 PM
UA announced some good news yesterday...they renegotiated their credit card deal with Chase which will earn them an extra $1 billion.

And then the bad news: they admitted half their fuel for the remainder of this year is hedged based on oil costing $111 a barrel, and their 2009 fuel hedges are pegged at $119 a barrel. Oil closed at $97.88 yesterday, though today is up to $104 on news of the Fed's rescue plan. UA warns their potential loss as a result of this could approach a half billion dollars.

http://www.atwonline.com/news/story.html?storyID=14068

Lezam
2008-09-21, 05:29 PM
Yeah, unfortunately a couple more airlines followed the same path. And I thought they pay people hundreds of thousands of dollars to figure this stuff out and not screw up? :roll:

Ari707
2008-09-22, 04:12 PM
with oil up $25 today maybe it wasn't so bad....