Does hedging make economic sense for American Airlines?

This study evaluates the impact of hedging in company value by analyzing how American Airline consolidated group’s market value is impacted by changes in the level of next year’s fuel needs hedged and total value of its outstanding agreements from 1989 to 2010. A descriptive and qualitative researc...

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Main Authors: Bruno Lucio Vieira, José Guilherme Chaves Alberto, Henrique Cordeiro Martins, Alex Moreira
Format: Article
Language:Portuguese
Published: Universidade Federal de Santa Catarina 2014-08-01
Series:Revista Contemporânea de Contabilidade
Online Access:https://periodicos.ufsc.br/index.php/contabilidade/article/view/31271
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author Bruno Lucio Vieira
José Guilherme Chaves Alberto
Henrique Cordeiro Martins
Alex Moreira
author_facet Bruno Lucio Vieira
José Guilherme Chaves Alberto
Henrique Cordeiro Martins
Alex Moreira
author_sort Bruno Lucio Vieira
collection DOAJ
description This study evaluates the impact of hedging in company value by analyzing how American Airline consolidated group’s market value is impacted by changes in the level of next year’s fuel needs hedged and total value of its outstanding agreements from 1989 to 2010. A descriptive and qualitative research methodology was used. Secondary data was collected for a case study.The results indicate that it makes economic sense to hedge fuel costs. However, investors have negatively valued increases in hedge positions. 
format Article
id doaj-art-892b3883e47f4e23a06fb3a764ce3270
institution Kabale University
issn 1807-1821
2175-8069
language Portuguese
publishDate 2014-08-01
publisher Universidade Federal de Santa Catarina
record_format Article
series Revista Contemporânea de Contabilidade
spelling doaj-art-892b3883e47f4e23a06fb3a764ce32702025-08-20T03:42:14ZporUniversidade Federal de Santa CatarinaRevista Contemporânea de Contabilidade1807-18212175-80692014-08-01112310.5007/2175-8069.2014v11n23p14122429Does hedging make economic sense for American Airlines?Bruno Lucio Vieira0José Guilherme Chaves Alberto1Henrique Cordeiro Martins2Alex Moreira3Ohio University.Fumec University.Fumec University.Fumec University. This study evaluates the impact of hedging in company value by analyzing how American Airline consolidated group’s market value is impacted by changes in the level of next year’s fuel needs hedged and total value of its outstanding agreements from 1989 to 2010. A descriptive and qualitative research methodology was used. Secondary data was collected for a case study.The results indicate that it makes economic sense to hedge fuel costs. However, investors have negatively valued increases in hedge positions.  https://periodicos.ufsc.br/index.php/contabilidade/article/view/31271
spellingShingle Bruno Lucio Vieira
José Guilherme Chaves Alberto
Henrique Cordeiro Martins
Alex Moreira
Does hedging make economic sense for American Airlines?
Revista Contemporânea de Contabilidade
title Does hedging make economic sense for American Airlines?
title_full Does hedging make economic sense for American Airlines?
title_fullStr Does hedging make economic sense for American Airlines?
title_full_unstemmed Does hedging make economic sense for American Airlines?
title_short Does hedging make economic sense for American Airlines?
title_sort does hedging make economic sense for american airlines
url https://periodicos.ufsc.br/index.php/contabilidade/article/view/31271
work_keys_str_mv AT brunoluciovieira doeshedgingmakeeconomicsenseforamericanairlines
AT joseguilhermechavesalberto doeshedgingmakeeconomicsenseforamericanairlines
AT henriquecordeiromartins doeshedgingmakeeconomicsenseforamericanairlines
AT alexmoreira doeshedgingmakeeconomicsenseforamericanairlines