How airlines have hedged against fuel price increases

Higher oil prices due to the Iran war are increasing prices of jet fuel, which accounts for a big portion of airlines’ costs. Brent crude oil rose near $100 per barrel on Thursday on worries about disrupted supply. Spot Northwest European jet fuel prices were at $1,536 per metric tonne on Thursday, trading near an all-time high of $1,633 they reached intra-day on Monday. Some airlines use futures and options to hedge against price increases. They also try to hedge against value changes in the...

By none@none.com (Reuters)