Fuel Hedging Strategies Separate Winners From Losers
The global airline industry is facing record jet fuel prices due to the conflict in the Middle East, with prices surging from $96 a barrel to as high as $197. Airlines that hedged fuel prices, such as European carriers, are better positioned to absorb the shock, while those that didn’t, like major US airlines, are facing significant financial headwinds. The crisis is already forcing schedule changes and fare increases, with some carriers warning of potential fuel exhaustion. The situation was first reported by AeroTime.