Hedging holds fuel price high for Air New Zealand

Wed, 11 Mar 2020

Air New Zealand won't benefit from the oil price slump until the coming financial year, due to fuel hedges locked in at prices well above current rates.Jet fuel represents approximately 25 percent of Air New Zealand’s cost base and has a significant impact on company’s profitability.The airline hedges roughly 80 percent of its exposure to volatile crude oil prices, which Forsyth Barr head of research Andy Bowley said provides certainty to near-term costs but comes with its own set of risks.“I don’t think that is a bad thing, I think it is a goo...

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