Airlines have historically used the futures market to hedge against fluctuations in fuel costs. How did they accomplish this? Initial margin and maintenance margin. The airline would use future contracts. a. During the last few years when fuel prices were at record lows, many airlines have ceased hedging operations. b. What are the advantages and disadvantages of not hedging? c. If oil prices started moving downward after an airline had hedged, is it possible for the airline to unhedge? Counter party risk. What are the advantages and disadvantages of this move?