Energy Risk Europe: Austrian Airlines risk manager rails against hedging

Austrian Airlines risk manager argues fuel hedging delays firms' adaptation to higher costs and should be avoided

Wolfgang Henle, vice-president for controlling and risk management at Austrian Airlines, said fuel hedging by airlines was counterproductive and only served to “hide the reality of the market” from management.

Henle made the comments at Energy Risk Europe in London in October, despite the fact that Austrian Airlines’ parent company, Lufthansa, has an active fuel hedging programme.

“I’m not convinced hedging is the right answer – it just delays reaction to the market,” he said.

Hedging fuel price