In the last few weeks and months, fuel prices have risen sharply again. Now the first airline companies are starting again with hedging transactions. One hopes that one can protect oneself from further rising prices.

In Europe, the Lufthansa Group, Ryanair and Air France-KLM, among others, have significantly expanded the volume of fuel hedging in the last few days. According to Bloomberg News, about half of the demand was obtained through such price hedging transactions.

Fuel hedging can be beneficial for airlines because an agreed quantity is obtained at a previously agreed price. If it becomes more expensive on the world market, the airline benefits. But if the costs fall, the airline pays extra, because the price does not change. As a rule, therefore, not all requirements are secured through such transactions.