Transatlantic hedging diverges

摘要

Airline fuel hedging strategies are diverg- ing on both sides of the Atlantic. US air- lines are adapting their policies to offset benchmark WTI crude's volatility rela- tive to actual jet fuel costs. But European carriers are maintaining hedging posi- tions of 50-70pc, mostly on Brent futures. The divergence may be partly why the amount of US jet fuel swaps cleared on CME's Clearport exchange rose by 130,000 b/d to 700,000 b/d in January- May compared with a year earlier. Euro- pean jet swaps cleared through Clearport fell by 280,000 b/d to just 180,000 b/d during the same period.