May 5 (Bloomberg) -- Deutsche Lufthansa AG, 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.
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