Credit/Market Trends
Interestingly enough, although Jet fuel prices have plummeted from $4.30/gal last year to around $1.40/gal, Airlines have been hesitant to hedge, due in part to the notion that prices may drop further or that they’re still absorbing the beating of bad hedges. At least that’s the opinion that analyst Jesup & Lamont offered.

Could it be that Airlines, like all other businesses, are simply unable to hedge on get while the getting’s good jet fuel prices? True, Airlines didn’t invent borrowing to hedge, but it’s safe to assume they’re having trouble freeing up cash too.

There may be good news on the horizon, though. The NACM (Nat’l Association of Credit Managers) reported a second month of improvement in the Credit Managers index. While March’s increase was only half on one percent, it followed a 2.5% increase in February. Not exactly a quantum leap for credit, but certainly a positive sign.