Does hedging make economic sense for American Airlines?

Bibliographic Details
Main Author: Vieira, Bruno Lucio
Publication Date: 2014
Other Authors: Alberto, José Guilherme Chaves, Martins, Henrique Cordeiro, Moreira, Alex
Format: Article
Language: eng
Source: Revista Contemporânea de Contabilidade (Online)
Download full: https://periodicos.ufsc.br/index.php/contabilidade/article/view/2175-8069.2014v11n23p141
Summary: 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. 
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spelling Does hedging make economic sense for American Airlines?La cobertura tiene sentido económico para American Airlines?O hedge faz sentido econômico para a 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 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. Este estudio evalúa el impacto de la cobertura en el valor de la compañía al analizar cómo el valor de mercado del grupo consolidado American Airlines es impactado por cambios en el nivel de las necesidades cubiertas de combustible del próximo año y el valor total de sus acuerdos pendientes de 1989 a 2010. Fue utilizada una metodología de investigación descriptiva y cualitativa. Fueron recopilados datos secundarios para un estudio de caso. Los resultados indican que cubrir los costos del combustible tiene un sentido económico. Sin embargo, los inversores han evaluado negativamente los aumentos en las posiciones de cobertura.Este estudo avalia o impacto do hedge no valor da empresa através da análise de como o valor de mercado do grupo consolidado da American Airlines é afetado por mudanças no nível de necessidade de hedge de combustível do próximo ano e valor total de seus contratos em aberto de 1989 a 2010. A pesquisa caracteriza-se como de natureza quantitativa e descritiva; o método de coleta de dados utilizado foi um estudo de caso. Os resultados indicam que faz sentido econômico cobrir os custos de combustível. No entanto, os investidores têm valorizado negativamente o aumento nas posições de hedge. UFSC2014-08-26info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfhttps://periodicos.ufsc.br/index.php/contabilidade/article/view/2175-8069.2014v11n23p14110.5007/2175-8069.2014v11n23p141Revista Contemporânea de Contabilidade; v. 11 n. 23 (2014); 141-1542175-80691807-1821reponame:Revista Contemporânea de Contabilidade (Online)instname:Universidade Federal de Santa Catarina (UFSC)instacron:UFSCenghttps://periodicos.ufsc.br/index.php/contabilidade/article/view/2175-8069.2014v11n23p141/27706Vieira, Bruno LucioAlberto, José Guilherme ChavesMartins, Henrique CordeiroMoreira, Alexinfo:eu-repo/semantics/openAccess2020-01-24T08:16:24Zoai:periodicos.ufsc.br:article/31271Revistahttps://periodicos.ufsc.br/index.php/contabilidade/indexPUBhttps://periodicos.ufsc.br/index.php/contabilidade/oaircc.cse@contato.ufsc.br2175-80691807-1821opendoar:2020-01-24T08:16:24Revista Contemporânea de Contabilidade (Online) - Universidade Federal de Santa Catarina (UFSC)false
dc.title.none.fl_str_mv Does hedging make economic sense for American Airlines?
La cobertura tiene sentido económico para American Airlines?
O hedge faz sentido econômico para a American Airlines?
title Does hedging make economic sense for American Airlines?
spellingShingle Does hedging make economic sense for American Airlines?
Vieira, Bruno Lucio
title_short 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_sort Does hedging make economic sense for American Airlines?
author Vieira, Bruno Lucio
author_facet Vieira, Bruno Lucio
Alberto, José Guilherme Chaves
Martins, Henrique Cordeiro
Moreira, Alex
author_role author
author2 Alberto, José Guilherme Chaves
Martins, Henrique Cordeiro
Moreira, Alex
author2_role author
author
author
dc.contributor.author.fl_str_mv Vieira, Bruno Lucio
Alberto, José Guilherme Chaves
Martins, Henrique Cordeiro
Moreira, Alex
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. 
publishDate 2014
dc.date.none.fl_str_mv 2014-08-26
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://periodicos.ufsc.br/index.php/contabilidade/article/view/2175-8069.2014v11n23p141
10.5007/2175-8069.2014v11n23p141
url https://periodicos.ufsc.br/index.php/contabilidade/article/view/2175-8069.2014v11n23p141
identifier_str_mv 10.5007/2175-8069.2014v11n23p141
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv https://periodicos.ufsc.br/index.php/contabilidade/article/view/2175-8069.2014v11n23p141/27706
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv UFSC
publisher.none.fl_str_mv UFSC
dc.source.none.fl_str_mv Revista Contemporânea de Contabilidade; v. 11 n. 23 (2014); 141-154
2175-8069
1807-1821
reponame:Revista Contemporânea de Contabilidade (Online)
instname:Universidade Federal de Santa Catarina (UFSC)
instacron:UFSC
instname_str Universidade Federal de Santa Catarina (UFSC)
instacron_str UFSC
institution UFSC
reponame_str Revista Contemporânea de Contabilidade (Online)
collection Revista Contemporânea de Contabilidade (Online)
repository.name.fl_str_mv Revista Contemporânea de Contabilidade (Online) - Universidade Federal de Santa Catarina (UFSC)
repository.mail.fl_str_mv rcc.cse@contato.ufsc.br
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