How airlines have hedged against fuel price increases

Brent crude climbed to six-week highs of $97 a barrel Thursday after U.S. strikes on Iran and renewed Israeli threats raised fears of Middle East supply disruptions. That jump is pushing jet-fuel prices higher—spot Northwest European jet fuel hit $1,476 per metric ton, the highest level since May. Airlines that use fuel derivatives can blunt volatility, but hedges don’t remove exposure entirely, especially because jet fuel is priced in U.S. dollars. The article details how Air France-KLM, Cathay Pacific, China Eastern, easyJet, IAG and Lufthansa hedge different portions and horizons, and notes U.S. carriers that abandoned hedging could be most vulnerable if the war drags on.