Mumbai: The country’s second-largest carrier by market share, Jet Airways, will not hedge aviation turbine fuel (ATF) despite the fuel’s prices falling over 33% in the last six months, the airline’s top officials said on Monday, leading analysts to debate whether speculating prices is a good or bad strategy.
Speaking to analysts, the airline’s chief executive Cramer Ball said that Jet has benefited by not hedging fuel prices as several others — including many international carriers — had hedged at prices higher than the prevailing rates.
“We are not considering hedging fuel price,” Raj Sivakumar, Jet Airways’ senior vice-president, alliances and planning, told analysts.
Crude prices have fallen over 60% from $115 a barrel in June to about $45 in January, despite rallying back as much as 30% to $58 a barrel on Monday.
10/02/15 Financial Express
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Speaking to analysts, the airline’s chief executive Cramer Ball said that Jet has benefited by not hedging fuel prices as several others — including many international carriers — had hedged at prices higher than the prevailing rates.
“We are not considering hedging fuel price,” Raj Sivakumar, Jet Airways’ senior vice-president, alliances and planning, told analysts.
Crude prices have fallen over 60% from $115 a barrel in June to about $45 in January, despite rallying back as much as 30% to $58 a barrel on Monday.
10/02/15 Financial Express
