Jet Fuel Hedging Explored: How Airlines Handle Fluctuations In Prices

As previously discussed on Simple Flying, the largest operational expense that airlines face is the cost of fuel which, depending on the year, typically accounts for somewhere between 20% and 30% of their total operational expenses. This poses a serious challenge for airlines, which must be prepared to handle periods of rising fuel prices, and, as individual carriers are such a small part of the global energy demand picture, they have little ability to influence market prices.