18/08/2021
Fuel is one of the most powerful commodities in the world. It might make or break countries, their development, their movement, their war-making capacity. Yes, Fuel…. the reason America fights battles with countries it shares no borders with. In this article, we shall discuss what fuel hedging is in the aviation industry. We also talk about its kinds are there and what airlines practice it....
Aircraft operate on fuel only, a commodity whose price is volatile. The price changes day-to-day in the world market (thankfully not so volatile like crypto, but still volatile). This mere fact can affect operating costs for airlines companies, driving down their profits. Therefore, big airlines hav...