Is Jet Fuel Hedging in the Airline Industry Valuable?
Author | : Gjest Andreas Breistein |
Publisher | : |
Total Pages | : 73 |
Release | : 2009 |
ISBN-10 | : OCLC:767812790 |
ISBN-13 | : |
Rating | : 4/5 (90 Downloads) |
Download or read book Is Jet Fuel Hedging in the Airline Industry Valuable? written by Gjest Andreas Breistein and published by . This book was released on 2009 with total page 73 pages. Available in PDF, EPUB and Kindle. Book excerpt: Negatively, with the level of activity in the commercial aviation industry will have severe effects on the value of jet fuel price hedging. The next part is a brief introduction to the practice of hedging commodity prices with different types of derivatives. This is a concise follow-through of the different aspects one has to consider when hedging commodity prices. Airlines who want to utilize financial commodity markets while minimizing the probability of losses need thorough knowledge about these markets. To end with, the characteristics of the crude oil and jet fuel prices and their implications for the airline industry are examined. This chapter is an extension of the previous one and is supposed to provide additional knowledge about the challenges of jet fuel price hedging. The two last sections give the reader an educated understanding of how some airlines have been able to utilize the commodity markets better than others.