(MENAFN) 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, The Peninsula Qatar reported.
The Chicago-based carrier reported that it has shrunk its hedge position to cover 22 percent of the fuel it consumes in 2015, down from the 24 percent it had anticipated when oil prices were higher.
The airline said it did so at a cost, raising its average fuel expenses last quarter to USD2.83 per gallon from up to USD2.76 per gallon, the price it had estimated on December 8.
This move represents just one step of a broader effort parent company United Continental Holdings Inc has taken to evaluate its fuel hedges, a company's spokesman said.
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