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LH fuel hedging in NYT article
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Jun 17, 2008 | 6:51 am
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oliver2002
Moderator: Lufthansa Miles & More, India based airlines, India, External Miles & Points Resources
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The company I work for (and many other export oriented german firms) hedges the USD vs EUR and has long term precious metal contracts to reduce the risk of unplanned changes in exchange rates or commodity prices for the bottom line of the company. In the day to day business we don't see the hedge and painfully suffer from the falling dollar or the increasing Pt prices. The correction can only be found in the annual corporate report when they close the books. I strongly assume its the same for LH. Its highly unlikely they don't take the cost of fuel into account when checking the profitability of a route.
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