Mumbai: Air India will step up fuel hedging to guard against future volatility in the crude price.
Globally crude price fell below $ 90 a barrel and is expected to be bearish for next few months but airlines in Asia are looking to increase the hedge volume against future risks.
"We plan to hedge about one lakh barrel a month of our next year requirement,'' said an Air India spokesperson.
Air India began fuel hedging in 2002 but discontinued it some years later. Last year the airline's board approved hedging of about 5 lakh barrels of jet fuel each quarter which is equal to about 20% of its total consumption. However in the last fiscal it hedged 70,000 barrels.
Air India management has been cautious about hedging but globally airlines hedge 50-60% of their fuel requirement. According to a Reuters report Australian airline Qantas hedged 94% of fuel requirement in first half of the year.
Read news in full 10/10/14 Aneesh Phadnis/Business Standard
Globally crude price fell below $ 90 a barrel and is expected to be bearish for next few months but airlines in Asia are looking to increase the hedge volume against future risks.
"We plan to hedge about one lakh barrel a month of our next year requirement,'' said an Air India spokesperson.
Air India began fuel hedging in 2002 but discontinued it some years later. Last year the airline's board approved hedging of about 5 lakh barrels of jet fuel each quarter which is equal to about 20% of its total consumption. However in the last fiscal it hedged 70,000 barrels.
Air India management has been cautious about hedging but globally airlines hedge 50-60% of their fuel requirement. According to a Reuters report Australian airline Qantas hedged 94% of fuel requirement in first half of the year.
Read news in full 10/10/14 Aneesh Phadnis/Business Standard
No comments:
Post a Comment