The State of Airline Fuel Hedging & Risk Management

Executive Summary

The State of Airline Fuel Hedging & Risk Management is the result of a study conducted to reveal the current state of fuel hedging and risk management among commercial airlines. The most noteworthy finding of the study is that, while the majority of airlines are hedging their fuel price risk, nearly half stated that their hedging programs should be utilizing hedging strategies which better reflect their tolerance for risk and corporate objectives. 81% stated they are or, have previously, hedged their jet fuel price risk Of those who are or have engaged in jet fuel hedging, 76% stated that

they have an official fuel hedging policy When asked about the primary purpose of their fuel hedging program,

44% stated that it is to protect against short term price increases Swaps and call options are the most popular hedging instruments

utilized among study participants 82% stated that they currently have fuel hedges in place When asked how they could most improve their fuel hedging program,

39% stated that they could do so by utilizing hedging strategies which better reflect the company’s risk tolerance and hedging goals

To download the full report please visit the following link:

www.mercatusenergy.com/state-of-airline-fuel-hedging

Mercatus Energy Advisors

Mercatus Energy Advisors is the leading, independent energy hedging & risk management advisory firm. Our client base includes energy consumers, marketers, producers, refiners, and traders as well as financial institutions, institutional investors and professional services firms. For more information, please visit our website at www.mercatusenergy.com or contact us at +1.713.970.1003.

Mercatus Energy Advisors