Germany’s Lufthansa Has Hedged 75 Percent of Jet Fuel for 2011
Deutsche Lufthansa AG (LHA), Europe’s second-largest airline, said it hedged 75 percent of its jet fuel needs for this year.
The carrier is 35 percent hedged for 2012, according to a presentation by Chief Financial Officer Stephan Gemkow posted on the company website. Lufthansa benefits from hedging as long as Brent crude trades at more than $92 a barrel, the slides show.
Hedging allows airlines to agree on prices for future fuel needs and is intended to help guard against cost fluctuations.
Jet fuel in northwest Europe averaged $999 a ton this year, according to data compiled by Bloomberg. The prices are for barge lots of 1,000 or 2,000 tons. Brent crude oil for next- month settlement on the ICE Futures Europe exchange in London has averaged $110 a barrel this year.
To contact the reporter on this story: Rachel Graham in London email@example.com
To contact the editor responsible for this story: Stephen Voss at firstname.lastname@example.org
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.