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Fuel Hedging in Aviation Industry

 Fuel hedging in aviation

Fuel Hedging is contacted for  the Fuel consuming company such as airlines the made to protect them from rising fuel prices they estimate the cost in which they will buy fuel it is known as Fuel Hedging.

Image show us the person filling aviation fuel in Aircraft


Fuel hedging pros and cons

It will depend on the future prices of the crude oil or jet fuel the airline enters into fuel hedging to save then from rising fuel prices and estimate fuel prices for the airline's budget

Some Airline does not do fuel hedging because

 They can manage rising fuel prices without any effect on their financial condition

 as some airlines analyze fuel prices and predict future prices

or incoming time fuel prices me decrease

it can also be expensive for Airline if Fuel prices will goes down for example due to covid 19 


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