Feeling the heat

Uncertainty over future fuel prices is proving a headache for airlines. While many put on successful hedges last year ahead of widely anticipated price spikes, this year's price falls have discouraged hedging. Joe Marsh looks at how airlines in Asia are responding

Asia's airline industry – along with business heads at other fuel-intensive companies – undoubtedly breathed a collective sigh of relief as fuel prices trended down steadily in the past six months. The global benchmark West Texas Intermediate (WTI) crude oil spot price was hovering around $62 a barrel (bbl) in mid-April – having dropped below $50/bbl in January – down from its record high of $78/bbl in August last year. Jet fuel prices have followed a similar pattern (see graph).

This means the

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