Analysis predicts savings of $7.7bn a year by hedging ticket prices 

Research conducted by Regis Huc, from Toulouse Business School, has revealed that the airline industry could save up to $7.7 billion per year through adopting strategies like hedging ticket prices to manage its revenue volatility. Today, airlines use a series of financial risk management strategies and tools to reduce volatility on risks such as fuel prices, exchange rates and interest rates. However, there has never been a financial instrument to reduce volatility on the largest position affecting their profit and loss statement: revenue. The study has calculated the impact of reducing the volatility of airline industry revenues and profits –