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Hedging Activities
 3 Months Ended
Mar. 31, 2017
Hedging Activities

NOTE 7 - HEDGING ACTIVITIES

Fuel Derivatives

As of March 31, 2017, the Company did not have any fuel hedging contracts outstanding to hedge its fuel consumption. The last of the Company’s fuel hedge derivatives designated for cash flow hedge accounting expired in December 2016. The Company’s current strategy is to not enter into transactions to hedge its fuel consumption, although the Company regularly reviews its strategy based on market conditions and other factors.

The following table presents the impact of derivative instruments and their location within the Company’s unaudited statements of consolidated operations (in millions):

Derivatives designated as cash flow hedges

 

     Amount of Loss
Recognized
in AOCI on Derivatives
(Effective Portion)		      Loss
Reclassified  from
AOCI into
Fuel Expense (a)		  
     Three Months Ended
March 31,		      Three Months Ended
March 31,		  
             2017                      2016                      2017                      2016          

Fuel contracts

     $ —        $ (16)       $ (2)       $ (138)  

 

(a) The 2017 loss reclassified from AOCI into fuel expense represents hedge losses on December 2016 settled trades, but for which the associated fuel purchased in December was not consumed until January 2017.