FlyerTalk Forums - View Single Post - Is it Just AA? [that keep fares high even as fuel costs decline]
Old Jan 17, 2015 | 1:34 pm
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Originally Posted by RogerD408
Airlines buy their fuel way in advance of use trying to hedge the bet on price increases. Unfortunately fuel costs don't drop for them as fast as they do on the market. But yes, one would expect the price of a ticket to reflect the cost of actually flying, but if the sales are strong, there's no reason to drop fares.
Unlike DL/UA, AA does not hedge fuel.
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