Airlines return to fuel hedging

Dino D'Amore
By Dino D'Amore September 23, 2015 20:10

Airlines return to fuel hedging

European airlines are returning to fuel hedging to capitalize on the collapse in oil prices. However, in this volatile trading environment, most are considering using more options contracts to access lower prices should they fall further. Options contracts give the purchaser the right, but not the obligation, to buy or sell fuel in the future at a certain price.

Sources expect the third quarter results to show that airlines are hedging more fuel for longer periods.

Dino D'Amore
By Dino D'Amore September 23, 2015 20:10