The Model Room ยท MR-032

HE LOCKED IN FUEL AT ONE-TEN. OIL DROPPED TO FIFTY SIX DAYS LATER. THE HEDGE HAD NO FLOOR.

On February 25, 2014, Marcus Lau locked in a hedged price of one hundred and ten dollars per barrel for jet fuel, confidently predicting stability. Just fifty-six days later, crude prices began their dramatic collapse, leaving the airline to pay double the market rate while its competitors thrived.

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