Fuel hedging a disaster for Air France-KLM

By Barbara Ortner on February 14, 2009 6:31 PM | No Comments | No TrackBacks

air france klm.jpgThe airline Air France-KLM blamed fuel hedging for its heavy third-quarter losses, and announced that it would be scrapping the disastrous strategy in 2009.

While crude oil prices fell from the $140s/barrel to $47/barrel, the airline's fuel hedging policy had cost it €288 million in the third quarter of 2008, according to this article in the Times today.

As soon as Air France-KLM announced on Friday that it would be abandoning the policy, its share price rose by nearly 4%.

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    This page contains a single entry by Barbara Ortner published on February 14, 2009 6:31 PM.

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