Prudent jet fuel hedgers are actively hedging their forward costs of jet fuel. At the time of this article, jet fuel costs have dropped more than $0.5000 c/gal (= %16.50) and now currently rest within the lower 20% range of the Nov 2012/March 2013 rally. Alternatively, it can be said current fuel prices rest within ten cents of their June 2012 low (on a correlated basis). In this environment, airlines should be combining call spreads, out-of-the-money ceilings and 3-way structures to lock in forward rates and create price ceilings assuring limitations on maximum forward prices should prices return to their

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