That's another way to quickly go into the red. You purchase futures contracts to hold your fuel prices steady, then the market turns and fuel gets really cheap.

That's another way to quickly go into the red. You purchase futures contracts to hold your fuel prices steady, then the market turns and fuel gets really cheap. Your competitors can now start a fare war and you're locked into expensive fuel while they enjoy cheap fuel. When you make a bet on the future price of a commodity, that bet may work well for you (see Southwest during the late 2000s [1]). But it just as easily can hurt you if the prices move the other way. [1] https://www.nytimes.com/2007/11/28/business/worldbusiness/28iht-hedge.4.8517580.html https://www.nytimes.com/2007/11/28/business/worldbusiness/28...