This one just made me laugh out loud. An article on Bloomberg this morning talks about how Alaska Airlines will post a record 3rd quarter loss today - $200 million of which is attributed to FALLING crude oil prices.

See, all airlines saw a trend over the last two years - skyrocketing fuel prices. So they made hedge investments in the other direction. If fuel prices continued to rise, the hedge bets paid off, and costs for fuel remain steady. That’s how it’s supposed to work.

But if commodity prices take a sudden dive, as they have recently - it goes against the hedge - and the bet loses. This is exactly what happened to Alaska Airlines - to the tune of $200 million last quarter.

So when you see the “Fuel Surcharge” on your next airline ticket, smile. It’s all because gas prices went down.