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Relationship Between Hedge Profit and Jet Fuel Price

This document shows the fuel costs, hedging gains/losses, and net fuel costs for an airline from 2006-2007 to 2016-2017. It also shows the relationship between hedging profits/losses and jet fuel prices over this period. Generally, hedging profits increased when fuel prices increased, offsetting higher fuel costs. The largest hedging gains occurred in 2008-2009 and 2014-2015 when fuel prices significantly increased.

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Thomas
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57 views

Relationship Between Hedge Profit and Jet Fuel Price

This document shows the fuel costs, hedging gains/losses, and net fuel costs for an airline from 2006-2007 to 2016-2017. It also shows the relationship between hedging profits/losses and jet fuel prices over this period. Generally, hedging profits increased when fuel prices increased, offsetting higher fuel costs. The largest hedging gains occurred in 2008-2009 and 2014-2015 when fuel prices significantly increased.

Uploaded by

Thomas
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Fuel cost before Fuel hedging Fuel cost (net) ($

Fiscal Year hedging ($ million) gain/loss ($ million) million)


2006-2007 3,787.0 94.0 3,881.0 1.948 -94.0
2007-2008 4,240.0 -185.0 4,055.0 2.796
Relationship 185.0
between Hedge profit and jet
2008-2009 5,043.0 306.0 400.0 5,349.0 2.118 -306.0
2009-2010 3,076.6 460.1 3,536.7 2.020 -460.1
200.0
2010-2011 3,755.2 49.9 3,805.1 2.620 -49.9
2011-2012 4,888.7 -19.9 0.0 4,868.8 3.065 19.9
2012-2013 4,979.1 -27.7 -200.0 4,951.4 3.018 27.7
2013-2014 4,843.7 -71.1 4,772.6 2.944 71.1
-400.0
2014-2015 4,079.3 456.9 4,536.2 2.172 -456.9
-600.0 1.306 -926.6
2015-2016 2,636.7 926.6 3,563.3
2016-2017 2,624.5 269.0 -800.0 2,893.5 1.456 -269.0
205.3 -1,000.0
-205.3
07 08 09 10 11 12 13 14
- 20 - 20 - 20 - 20 - 20 - 20 - 20 - 20 -2
006 007 008 009 010 011 012 013 014
2 2 2 2 2 2 2 2 2

Hedge gai n/l os s Jet fuel pri ce


Hedge profit and jet fuel price
3.500

3.000

2.500

2.000

1.500

1.000

0.500

0.000
12 13 14 15 16 17
- 20 - 20 - 20 - 20 - 20 - 20
11 12 13 14 15 16
20 20 20 20 20

/l os s Jet fuel pri ce


Jul Aug Sep Oct Nov Dec
  2006 2.173 2.215 1.947 1.813 1.774 1.906 1.727 1.766 1.846
  2007 2.167 2.151 2.256 2.353 2.656 2.655 2.665 2.674 3.106
  2008 3.978 3.393 3.278 2.569 1.974 1.47 1.472 1.352 1.266
  2009 1.759 1.894 1.822 1.917 2.06 2.012 2.121 1.999 2.129
  2010 2.1 2.138 2.131 2.263 2.342 2.459 2.585 2.783 3.095
  2011 3.09 3.04 3.025 2.962 3.089 2.951 3.059 3.186 3.296
  2012 2.85 3.129 3.245 3.182 3.015 2.982 3.093 3.25 3.036
  2013 2.899 2.995 3.017 2.928 2.868 2.978 2.964 2.981 2.939
  2014 2.882 2.882 2.823 2.547 2.41 1.998 1.612 1.722 1.731
  2015 1.655 1.479 1.443 1.451 1.4 1.207 1.022 1.017 1.1
  2016 1.354 1.313 1.366 1.471 1.406 1.511 1.561 1.592 1.52
2.021 2.079 2.114 1.95
3.315 3.642 3.912 2.80
1.425 1.46 1.78 2.12
2.247 2.186 2.094 2.02
3.259 3.188 3.101 2.62
3.255 3.076 2.747 3.06
2.884 2.763 2.784 3.02
2.911 2.932 2.917 2.94
1.709 1.933 1.813 2.17
1.155 1.311 1.428 1.31
1.545 1.459 1.378 1.46

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