Jet Airways to hedge 25% ATF: report

Mumbai: The hedging deal is almost final and is expected to go through next few weeks.
Jet Airways is in final stage of talks for hedging about 25% of its aviation turbine fuel (ATF) requirement with two oil companies, says a business daily. The financial newspaper reports that the hedging deal is almost final and is expected to go through in the next few weeks.
Hedging is a process wherein buyers lock in on the prices of final products for settlement at a future date to insulate margins from price volatility. The pink paper reports that ATF accounts for about 40-50% of the operating cost of Indian airlines, which are expected to post a combined loss of US$2bn for the fiscal year 2008-09, primarily due to high fuel prices.
02/02/09 India Infoline

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Categories: Jet Airways Feb 2009