Airline hedging falling short of best practices

Fuel hedging programmes at many airlines fall short of best practices, according to a new industry survey. Alexander Osipovich finds out how they are going awry

Turbulence ahead for airline hedging

Over the past two decades, the commercial aviation industry has largely embraced the use of hedging. The vast majority of carriers in North America and Europe, as well as many airlines in emerging markets, see hedging programmes as a crucial tool for managing the volatility of jet fuel prices.

But as hedging has become the status quo, questions have arisen about whether airlines are doing it effectively. Some critics ask whether the transaction costs of using derivatives are worth the benefits

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here