Originally Posted by
nicolas75
Actually "couvertures pétrolières" are not fuel surcharges (ticket price increase depending on oil prices) but oil hedging.
Air France-KLM has hedged 78 percent of its fuel consumption through March 2009, at $70 to $80 a barrel. Through a policy of hedging fuel four years in advance, the company saved about $35 a barrel when oil was at $120 a barrel.
This policy was an important competitive advantage when oil prices were high (with the exception of Southwest Airlines, most US airlines are less hedged than European ones).
But as fuel now is below $80 a barrel, Air France is currently paying oil at a more expensive price if it would buy it at Brent spot prices.
The way I read Falco's post here in Hong Kong is that AF was taking advantage of high fuel price ("le beurre et l'argent du beurre") by charging high fuel surcharge with no reason, since they were so well hedged. So Falco's statement seems right to me.