From The Economic Times · Reuters · · 1m 20s
Airlines Can't Predict Oil Prices Anymore
Airlines globally face higher airfares as fuel hedging fails amid oil price volatility.
In brief
Airlines globally face higher airfares as fuel hedging fails amid oil price volatility. Airlines globally face higher airfares as fuel hedging fails amid oil price volatility. Originally reported by The Economic Times.
Global airlines face fuel cost challenges
Airlines globally face challenges in fuel cost hedging as prices remain elevated due to geopolitical tensions.
Jet fuel prices double since Iran war
Jet fuel prices at roughly double their levels before the Iran war, airlines growing increasingly reluctant to lock in future fuel costs through new hedges.
AirAsia CEO warns of high oil prices
AirAsia CEO Tony Fernandes said most hedging is finishing and the firm is budgeting for 12 months of high oil prices.
Finnair stops adding new hedges
Finnair stopped adding new hedges as fuel costs surged this year with an average hedging ratio of 34% for 2027.
Ryanair CEO predicts fare increases
Ryanair CEO Michael O'Leary said none of European airlines are well-hedged until summer 2027, expecting air fares to rise 15% to 20%.
Norwegian Air Shuttle cuts price hikes
Norwegian Air Shuttle had to undo some post-Iran war price hikes because customers were not willing to pay.
US airlines avoid hedging
US airlines have largely shown little appetite to return to hedging despite this year's fuel shock.
The key point
Airlines globally face higher airfares as fuel hedging fails amid oil price volatility.
