Delta CEO: We've Been Burned by Hedging Oil Prices

The transcript discusses the impact of fluctuating oil prices on airline operations, highlighting concerns about rising costs and the challenges of adjusting capacity. It explores the decision-making process regarding hedging strategies, emphasizing the need for market stability before re-entering hedging. The conversation also touches on broader economic factors and the importance of timing in financial decisions.

What is the main concern for airlines when oil prices exceed $100 per barrel?

• Improved profit margins

• Higher operational costs

• Reduced competition

• Increased passenger demand

What factors are considered when evaluating international routes for the fourth quarter?

• Local tourism trends

• Security risks in Europe

• Airline partnerships

• Weather conditions

Why has the airline avoided hedging oil prices in recent years?

• Stable oil prices

• Lack of financial resources

• Excessive market volatility

• Government regulations

What is the airline looking for before considering re-entering the hedging market?

• Long-term stability in oil prices

• A significant drop in oil prices

• Increased competition

• Government incentives

How does the airline view the opportunity cost of not hedging when oil prices are low?

• As a missed profit opportunity

• As a strategic advantage

• As a necessary risk

• As a cost-saving measure