Airlines hedging jet fuel should be evaluating long term hedges NOW!

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