Airlines lose billions hedging… – Commodity Research Group

June 4, 2020 by Jim Colburn Leave a Comment

Alex Longley, Bloomberg, writes about hedging gone bad for European airlines, here…

“Ten airlines in Europe and the Asia-Pacific — where carriers tend to purchase oil derivatives to hedge against volatility in fuel prices — have lost about $4.65 billion on those contracts this year, according to financial results compiled by Bloomberg through June 3. Deutsche Lufthansa AG and International Consolidated Airlines Group SA account for about half the total.”

Many US airlines exited hedging over the years due to massive losses down markets…

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

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