How European airlines have hedged against fuel price increases
Higher oil prices amid turmoil in the Middle East are increasing prices of jet fuel, which accounts for a big portion of airlines' costs. Brent crude oil almost hit $94 per barrel shortly after the Hamas attack in Israel on Oct. 7. It has since eased to around $84. Spot Northwest European jet fuel prices were at $914 per metric ton, or around $116 per barrel, on Thursday. That compares to a peak of over $128 per barrel in the week following the assault, and an all-time high of around $186 in June 2022 after Russia's invasion of Ukraine.Some airlines use futures and options to hedge against price increases. They also try to hedge against value changes in the U.S. dollar, in which jet fuel is priced. Story lists how European airlines are hedged heading into 2024. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-12-01/general/how-european-airlines-have-hedged-against-fuel-price-increases
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How European airlines have hedged against fuel price increases
Higher oil prices amid turmoil in the Middle East are increasing prices of jet fuel, which accounts for a big portion of airlines' costs. Brent crude oil almost hit $94 per barrel shortly after the Hamas attack in Israel on Oct. 7. It has since eased to around $84. Spot Northwest European jet fuel prices were at $914 per metric ton, or around $116 per barrel, on Thursday. That compares to a peak of over $128 per barrel in the week following the assault, and an all-time high of around $186 in June 2022 after Russia's invasion of Ukraine.Some airlines use futures and options to hedge against price increases. They also try to hedge against value changes in the U.S. dollar, in which jet fuel is priced. Story lists how European airlines are hedged heading into 2024. <br/>
