Airlines Are Hedging Against Higher Oil Prices

Airlines are back to hedging the price of fuel to protect themselves from higher oil prices next year, although the hedges are less risky and for shorter periods as uncertainty remains over when airline travel will return to pre-COVID levels.   During the pandemic, the industry is estimated to have lost around $5 billion in total on forward hedges of the price of fuel, which hardly anyone needed last year with international flights grounded.

Now some of the major airlines in Europe, as well as budget airlines, are back to hedging to protect…