Analyst sees fuel hedging price to go up amidst oil hike

Fuel hedging refers to buying oil in the future at a fixed earlier price.

Jet fuel prices keep soaring due to high inflation, which may prompt fuel hedging prices to increase, investment banking firm, Jefferies, reported.

In its report on Cathay Pacific, Jefferies said the airline management reiterated policy “to hedge the percentage of expected fuel consumption.”

“Based on end-2021, first quarter was 100% hedged at $392 (US$50) Brent with second quarter to fourth quarter hedging ratio from 45% to 43% and Brent price of $392 (US$50) in 2Q to $470 (US$60),” said Jefferies.

Fuel hedging is a type of practice commonly done by airlines to purchase fuel in the future at a fixed earlier price.

Jefferies, meanwhile, sees a “more upbeat tone” for passenger and cargo recovery of Cathay Pacific as the airline increased its number of routes by 64%.

“Passenger headwinds continue to ease as flights resume through this year with a year-end target to 'double' the number of destinations from 29 at the start of 2022 with 45 destinations having resumed by June,” said Jefferies.

$1 = US$0.13

Follow the link for more news on

Cathay Pacific

Also Read

HK Express launches cross-platform partnership with Klook

HK Express launches direct flights to Hualien starting 12 December

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit