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Alaska Air Halts Oil Hedging Program, Leaving Few US Holdouts
Alaska Air stopped buying new crude oil call options in the fourth quarter and said it is exploring new ways to protect against volatility in refining margins.
Photographer: Eric Thayer/BloombergThis article is for subscribers only.
One of the last remaining US airlines to hedge the price of oil has suspended the practice, supporting what some rivals have been saying for years: The costs don’t always justify the benefits.
Alaska Air Group Inc. stopped buying new crude oil call options in the fourth quarter and said it is exploring new ways to protect against volatility in refining margins, which have whipsawed over the last few years.