RE: This BB has lost all Credibility5 Nov 2020 23:32
Istabrraq: Fuel hedging/Operatives is gambling, you can win or lose. In December 2019 Crude was 67 $ a barrel, in March 2020 it was 32$ a barrel, less than half price. Fuel, is a high operating cost for any airline so obviously there is strong motivation to reduce the cost. IAG and Most airlines lost as no one could predict Covid was coming, 2020 was planned as a robust healthy market. Hedging will cost IAG the best part of 2 Billion euros in 2020, that is a lot of cash, consequently IAG have pulled back from Hedging. Most hedges are 6 and 12 moths so hopefully no nasty surprises for 2021. Incidentally, AA stopped hedging years ago, but was very popular in Europe, it also hit Lufthansa hard as well, burnt fingers learn lessons!