11/26/2008

On a day when the price of oil settled under $51 a barrel, United Airlines said its fuel-hedging losses for the fourth quarter could reach $232 million. Parent company UAL Corp. could be forced to put up nearly $1 billion in collateral to protect its hedging positions, but cheaper oil is still a net positive, according to CFO Kathryn Mikells. "Lower fuel prices benefit our company and all of us," she said in an e-mail to employees. UAL stock soared 25% Tuesday on news that the company had renegotiated its cash reserve requirement with credit card processor Chase Bank.

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