Delta Air Lines' bad bets on fuel hedges turned into a multi-million dollar quarterly loss, but the company says it continues to hedge fuel prices to protect against volatility.
Atlanta-based Delta reported a loss of $168 million for the second quarter ended in June, including a $561 million charge to account for adjustments on fuel hedges.
Without the fuel hedge loss and other special item, Delta said it would have had a $586 million profit, or 69 cents a share.
Delta's chief financial officer Paul Jacobson said during a conference call with investors Wednesday morning that the company views its hedge portfolio as "protection against volatility" and is confident with its fuel hedge position.
Among the other "special items" is $171 million in severance and related costs for the 2,000 Delta workers taking early retirement while the airline cuts flight capacity by 3 to 4 percent this year.
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