The carrier closed all of its fuel-hedging positions in September, a spokesman, who declined to be identified because of a company policy, said today by phone. The airline’s passenger numbers rose 5.1 percent last year, the least in five years, it said in a statement last night.
The fuel-hedging gain contrasts with China Eastern Airlines (SHA:600115.SS)(HKG:0670)(NYSE:CEA) and Air China (SHA:601111) (HKG:0753)
China Eastern posted a $420,000 cash loss from settling hedging contracts in November. Air China, the nation’s largest international carrier, made a $5.9 million paper loss from hedging contracts in November, it said on Dec. 19.
Airlines use hedging to guard against increases in fuel prices. The cost of jet fuel more than doubled in a year to a record $181.85 a barrel in July. It ended the year at $54.15.
Bloomberg
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