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Delta loses $450 million bet on fuel prices
Delta Air Lines is taking a $450 million loss because jet fuel prices didn't jump as much as the airline bet they would. The Atlanta-based airline had locked in fuel purchases, in a contract known as a hedge, at levels above the current market value, betting that jet fuel prices prices would climb. And they did indeed rise. But they didn't go nearly as high as Delta had anticipated, which made that hedge a loser. So Delta pulled out of the fuel contracts, which cost the airline nearly half a million dollars. Shares of Delta (DAL) fell 4% in midday trading Tuesday.Related: Delta making all in-flight entertainment free ... (full story)
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