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The pandemic caused some airlines to realize very large losses on their hedge position. What was the primary driver of the large losses? Decrease in
The pandemic caused some airlines to realize very large losses on their hedge position. What was the primary driver of the large losses?
| Decrease in passenger air travel | ||
| Volatile oil prices | ||
| Hedge basis issue, jet fuel and oil prices moved in opposite directions, rendering the hedge useless | ||
| Producers inability to deliver the needed fuel due to the coronavirus |
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