WASHINGTON (Reuters) - American Airlines parent company AMR Corp. (AMR.N: Quote, Profile, Research, Stock Buzz) is expected to have jet fuel savings in the "high tens of millions of dollars" for the fourth quarter, because it hedged a large portion of its fuel requirements at an average oil price of $69 a barrel, the company's chief financial officer said on Monday.
Speaking at the Reuters Aerospace and Defense Summit in Washington, AMR's Tom Horton said the oil hedging program should account for a significant part of the company's income during the quarter. "It will provide a significant benefit in the fourth quarter," he said.
AMR hedged about 40 percent of its fuel needs for the current quarter at $69 a barrel. The spot market price for U.S. oil so far in the fourth quarter has fallen below $80 a barrel only once and has been above $90 a barrel for most of the last month.
(For summit blog: summitnotebook.reuters.com/)
(Reporting by Tom Doggett; editing by Tim Dobbyn)
© Thomson Reuters 2009. All rights reserved.
| Health | Nov 09 - 12, 2009 | Health |
| Autos | Nov 02 - 4, 2009 | Autos |
| Middle East Investment | Oct 26 - 28, 2009 | Country Summits |
| Washington | Oct 19 - 21, 2009 | Country Summits |
| Global Wealth Management | Oct 05 - 7, 2009 | Financial Services / Exchanges |
