Oil prices above $100 per barrel have reinvigorated the longstanding debate over whether airlines should hedge fuel costs. While European carriers like British Airways (via parent IAG) and Asian rivals continue hedging to stabilize expenses, U.S. majors such as Southwest and United have largely abandoned the strategy, citing past losses from misjudging market timing. Delta, which owns a refinery, remains an exception, using vertical integration to mitigate fuel risks.

The divide reflects divergent risk management philosophies: hedging locks in predictable costs but requires expertise in geopolitical and financial markets, while going unhedged exposes airlines to volatile swings but avoids reliance on complex derivatives.