Aviation bears brunt of fuel price gyrations and new rules

The price volatility seen in energy markets in recent years has had a big impact on the bottom line of many airlines, both in the form of higher prices as well as hedging losses. Pauline McCallion speaks to industry participants about the outlook for airline hedging strategies

The ups and downs of the airline industry can take their toll on those involved, as evidenced by JetBlue flight attendant Steven Slater's unconventional resignation in early August that sent the media and the blogosphere into a tailspin. However, a Slater-style exit is not always possible for airlines experiencing turbulent times.

When fuel prices rose to unprecedented levels in July 2008, followed by a rapid drop before the year was out, airlines were forced to remain in the game despite large