Chinese Airlines Skirting Fuel Hedge Profit From Plunge in Oil
- `Big Three' to report next week; currency swings may pinch
- Asian carriers reported losses from jet fuel hedging in 2015
An Air China aircraft at Shanghai Hongqiao International Airport.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China’s airlines are reaping the benefits of a policy not to hedge in the oil market, unlike some of their rivals across Asia Pacific.
The ’Big Three’ -- Air China Ltd., China Southern Airlines Co. and China Eastern Airlines Corp., will probably report next week at least a 70 percent surge in net income for 2015 amid a plunge in oil prices, which helps to trim their biggest expenditure. Hainan Airlines Co., the biggest non-government carrier, is due to report Thursday.