They hedge their fuel with exchange traded futures contracts.
No taxpayer funds involved.
Sir, I suppose that it is possible that “No taxpayers funds (are) involved” in my illustration of how airlines legitimately use derivatives. And, there may be some “derivatives” that are structured to where the taxpayer is completely out of the loop. To that I say HooRay! and that is a good thing and your right. On the airlines, you’ve sparked my curiosity and I will do some more research on whether or not the “taxpayer” has been kept completely out of that loop. With all due and sincere respect to your comment, I doubt it.
But, the facts are that B of A is trying as we both type to slide trillions of these damn derivatives into or on to it’s subsidiary Merrill Lynch so that UP TO the amount of the Fed’s guarantee they will be covered BY THE TAXPAYER. Please go to the link on Jonathan Turley’s article I posted about that.
So, you and I have “no beef”........LOL, as Long Islander Bill Oreilly would say. If there is a derivative that the taxpayers are not on the hook for that indeed is a good thing. Now, unfortunately, the several hundred trillion that are remain, hanging over our head.