Originally Posted by 808
Heard that the reason HA didn't post a 2nd qtr profit is because they used a lot of the money to hedge 40% of their fuel at around $1.40 a gallon. Makes great sense to me since it will pay dividends in the long run especially if av gas hovers around $2.00 like it has.
That doesn't ring true from an accounting standpoint. I doubt very much that money put down as collateral to secure a hedge would be considered an expense. It is simply an encumbered asset that would affect working capital but not income. It could lead to an expense (or revenue source) later as the hedge gains or loses value.