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Airline Hedging Strategies: The Shareholder Value Perspective

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Airlines, particularly those in the United States, continue to suffer from high jet fuel prices. Hedging is often touted as the solution to this problem, but it can be a double-edged sword for those who are not clear about why they are doing it.


By Carlos Blanco, John Lehman, and Naoki Shimoda
Commodities Now
June 2005

Airlines, particularly those in the United States, continue to suffer from high jet fuel prices. Hedging is often touted as the solution to this problem, but it can be a double-edged sword for those who are not clear about why they are doing it.

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ABOUT THE AUTHORS

Naoki Shimoda leads SDG's Energy & Environment Practice. 

John Lehman is a principal consultant with SDG. 

Carlos Blanco is Managing Director of Black Swan Risk Advisors, LLC.

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