Cash-strapped Norwegian bets on fuel-price drop as IAG circles

Norwegian Air Shuttle is entering the critical summer travel season with a bet that jet fuel prices will recede from 3 1/2-year highs -- a position that risks weakening CE Bjorn Kjos’s hand as he negotiates a potential buyout by the owner of British Airways. The airline typically hedges about half its fuel needs to protect against abrupt jumps that could explode costs. But it started scaling back last year, after kerosene prices were already on the rise. “We were reluctant to hedge at the high levels after the summer and have not hedged more for 2018,” said a spokesman. Instead of dropping, though, fuel prices have continued their upward march -- advancing more than 20% since last summer to more than US$700 a ton. Norwegian ended Q1 with 27% of its fuel costs hedged this year, well below rivals. <br/>