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ie(bqo6sz}19n4h24pwbtmzy_media_dl_1.png Bloomberg RSS (Bloomberg) — Airlines have been snapping up oil derivatives contracts to protect against higher prices in recent weeks as the Israel-Hamas war raises the specter of a surge in fuel bills. Traders and brokers active in the oil market say consumer hedging activity has increased since the conflict broke out, and industry executives have confirmed those moves in earnings calls in the last few days. The flurry of activity is showing up in surging volumes of call options that help buyers protect against significantly higher prices. Article content Article content While oil has fallen back to prewar levels as the conflict remains contained away from major crude-producing regions, airlines still see the risk of a spike in the price of the commodity that’s typically their largest single expense. “We will build it up very quickly,” Air France-KLM Chief Financial Officer Steven Zaat said on an earnings call last week, referring to how soon his company would reach its desired hedging volume of 70% of fuel consumption for early next year. “We are close to that 70% to make sure there’s no spike increase coming from what’s happening in Israel.” Airlines generally hedge their fuel bills using […]
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