United to review hedging policy amid oil price plunge

New York

UNITED Airlines has paid a premium to dump old losing bets on higher oil prices, and is reviewing its strategy for insulating itself from oil market volatility, in a sign of how some airlines' efforts to hedge their fuel costs have backfired.

The Chicago-based carrier reported Friday that it has shrunk its hedge position to cover 22 per cent of the fuel it consumes in 2015, down from the 24 per cent it had anticipated when oil prices were higher.