Very good, our two approaches tell roughly the same story ft101 .
The airline has made an emergency decision to protect its margin over the next few months. However it has only swallowed 30% of the real price increase, and the longer perspective is more uncertain: if the market anticipates jet fuel will remain at that level of price beyond the next quarter (and that is a very big if at this point), the airline will face further costs increases... and customers may have to pay more. This is pure speculation for now, and a reminder that hedging may give time to adjust, but is not magic.
I'd be interested to see what other airlines which do not hedge fuel are doing now in terms of pricing.