The aviation industry is facing a renewed cost crisis as fuel prices surge following the U.S.–Israeli war on Iran. While airlines routinely hedge against crude oil price swings to protect their balance sheets, the current crisis has exposed a critical vulnerability: jet fuel prices are rising much faster than crude itself.
Since the outbreak of the conflict, jet fuel prices have doubled, far exceeding the roughly one-third rise in crude oil prices. The widening gap between crude oil and refined jet fuel costs has created intense pressure on airline margins, forcing carriers across the world to respond with fare increases, fuel surcharges and capacity cuts.
The sudden shock has highlighted a structural weakness in airline fuel strategic most hedging programs are tied to crude…
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Source moderndiplomacy.eu
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