The severing of US benchmark WTI's connection to international oil markets is prompting a major rethink of hedging strategies by US airlines. Fuel bills account for more than 30% of their operating expenses and are rising, potentially adding $8 billion to US industry costs this year. US carriers are feeling more of a pinch since jet fuel has soared to a $25 per barrel premium to WTI futures, prompting Delta Airlines and others to abandon the US benchmark in favor of Brent crude and heating oil proxies.
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