News / Oil price volatility thrusts airline hedging strategies into the spotlight

© Andrew Balcombe

Shippers are facing more increases in airfreight costs as the surge in oil prices lifts carrier fuel surcharges.

And the airlines themselves face a dilemma over fuel price hedging.

The price of oil gushed through the $75-a-barrel mark on 13 July after two and a half years –  it had been nudging upward this year and so far has gained about 43%.

Inevitably, that has pushed up not only the airlines’ fuel costs, but also the amount customers pay, as the carriers have ...