Latest JetFuel Price charts:
We provide a number of airlines with our technical analyses for their JetFuel price risk
and a number of non-USA airlines with their US dollar exchange risk as well.
The airline industry purchases between 80 - 95% of its annual jet fuel requirements direct
from the refiner on a formula pricing basis.
On this basis, rising fuel prices will adversely affect the companies earnings.
Traditionally this risk has been offset by using the two contracts most similar to JetFuel
with reliable liquidity, London IPE gas oil contract and the New York NYMEX heating oil contract.
The UNHEDGED commercial airline is effectively speculating that the price will remain stable
and will inevitably have to accept the additional costs.