Originally Posted by economyman
If only they had the foresight of Southwest who hedged their position and are paying some $26 per bbl. when the regular price now has surpassed $60. Anyone know how much BA as hedged (as a % of total fuel purchased) and at what price?
According to a recent (May 05) research report by Smith Barney, European Airlines fuel hedging as follows:
Air France-KLM 62% to March 2006E
Alitalia No hedge reported
Austrian Airlines No hedge reported
British Airways 50% @ $35/bbl
easyJet Mar Q 05: 37% @ $332/tonne jet fuel
Jun Q 05: 20% @ $356/tonne jet fuel
Iberia 1H 90% @ $37.50/bbl brent
2H 30% @ $42/bbl brent
Lufthansa 80%
Ryanair Unhedged
SAS 50% @ $450/tonne jet fuel
Virgin Express No hedge reported
Not the easiest data to compare, but looks like BA is actually fairly well hedged - imagine quite where the surcharges would be otherwise!
