Jet Fuel's War Surge Vindicates Airlines That Hedged The war surge in jet fuel prices has left airlines scrambling to adapt, but those that hedged against price volatility have emerged as winners from a tumultuous period for the industry.
The global conflict triggered a sharp increase in demand for jet fuel, coupled with disruptions to supply chains, resulting in a 20% rise in prices.
Increases in jet fuel costs have a direct and profound impact on airline profitability. Fuel accounts for approximately 30% of an airline's operating expenses, making it the second largest expense after labor costs.