Rising fuel costs, diving profits


High volatility in jet fuel prices over the past two-and-a-half years has been a challenge for the commodity’s largest consumer, the aviation industry. Airlines, in particular, are finding it very expensive to hedge the risks associated with their biggest cost component. Jet fuel has always been a more volatile product than crude oil or other petroleum products. Yet more than one trader characterises the peaks and valleys of the post-September 11 jet fuel price curve as ‘hyper

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