Soaring Jet Fuel Margins Expose Limits of Airline Hedging Strategies
Jet fuel costs have climbed far more rapidly than crude oil since the U.S.-Israeli war on Iran, driven by an unprecedented widening in refining margins. Airlines with crude-based hedges or little to no hedging are announcing fare increases, surcharges and capacity reductions as carriers around the world confront squeezed margins. Analysts warn budg…