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How airlines have hedged themselves against fuel price rises
The Iran war has led to higher oil prices, and this is affecting jet fuel prices. This accounts for a large portion of airline costs. Brent crude oil jumped above $80 a barrel on Tuesday amid concerns about?supply disruption. Futures and options are used by some airlines to hedge against increases in price. Some airlines also hedge against changes in the value of the U.S. Dollar, which is used to price jet fuel. Here is a list of some of the largest airlines in the world. AIR FRANCE-KLM: In 'February, the Franco-Dutch group announced that it had increased its total exposure to fuel consumption over a year to 87%. The group said that it had 'extended its hedging horizon from six quarters to eight and increased the hedging percentages. AIR NEW ZEALAND New Zealand's national carrier announced in February that it would hedge 83% of its fuel costs for the second half year of its financial period and 46% of its fuel costs for the first six months of the year up to 2027. The majority of the hedges are in Brent Crude with some opportunistic Singapore Jet Swaps expected in second half of the year. CATHAY: Hong Kong's flagship airline said last year that it would hedge fuel costs into the second half of 2027. This will cover around 30% of the cost until the second half of 2026. CHINA EASTERN: State-owned airline says it has made careful assessments on derivatives market conditions, and did not engage in any jet fuel hedging transaction during the first half 2025. It had no jet fuel hedging contract outstanding as of 30 June 2025. EASYJET: In January, the British budget airline announced that it had hedged 84 percent of its fuel needs in the first six months of 2026. It also said that 62% of the fuel needed for the second half and 43 percent for the first six months of 2027 were covered at a cost of $688, $715 and $671, respectively, per metric tonne. It has 80 percent of the money it needs for the first six months of the year at $1.30 a pound. The second half is 62% at $1.24 a pound. And the first six months of 2027 are 40% at $1.32 pound. FINNAIR: In December, the Finnish carrier revised its risk management policies to increase the hedging period to 24 months from 18 previously. The company has purchased 219 tons at an average cost of $718 per ton for the first quarter and 834 tons at an average cost of $697 per ton through the second quarter. The hedging rate is set at 70%-95% for the initial three months and then lower limits are set for the following quarters. British Airways and Iberia's owner said that in February, fuel and currency hedges were down 9% by 2025 as compared to the year before. It stated that its policy included hedging up to 75% near-term expectations near-term and up to 80% in the case of low-cost carriers. ICELANDAIR: Icelandic airline said it would hedge fuel consumption between 20% and 50 percent six months in advance, 0% to 40 percent seven to twelve months ahead and 0-20% for 13-18 months. It stated that a 10% rise in fuel prices could have a $11.6 million impact on its equity. LUFTHANSA: Last year, the German airline said that its fuel hedging horizon is up to 24 month. The German carrier said that its fuel hedging ended in 2024 covered approximately 76% of the forecasted 2025 fuel requirements and about 28% for the forecasted 2026 requirements. NORWEGIAN AIR In February, the Norwegian airline said it had hedged approximately 45% of its estimated jet fuel consumption in 2026 and roughly?25% in 2027. QANTAS: In February, the Australian airline reported that 81% of fuel for its second half-year financial year ending June 30 2026 was hedged. RYANAIR: Michael O'Leary, the Irish carrier's CEO, said that the company was 84% hedged for the current quarter at $77 per barrel and had hedged about 80% of its jet fuel needs at around $67 per barrel. Last year, the largest Scandinavian airline announced that due to unpredictability in the market, it temporarily changed its fuel hedging policies and had zero percent of its fuel consumption covered for the next 12 months. Hedging is allowed up to 50% for the next six months. The company has a hedging policy that targets between 40 and 80% of the anticipated volumes in the coming year. SINGAPORE: In November, the company announced that it would hedge fuel for a period of up to five-years. 49% of fuel was covered in the third quarter of December, and 47% of fuel in the fourth quarter of March. This will reduce to 24% of fuel in the second half to 2027, and 7% of fuel in subsequent years. The company said that it paid between $66-$69 per barrel for Brent hedged and between $79-$87 per barrel for MOPS. VIRGIN AUSTRALIAN: In February, the Australian airline announced that it would hedge 85% of fuel costs and 94% for foreign exchange in its second half-year financial year. WIZZ Air: Hungarian budget airline said it would hedge 83% of its jet fuel needs for the period up to March 2026, at a cost between $681 and $749 per metric tonnes. It stated that it would cover 55% of the total year up to 2027, and 7% of the total year up to 2028 at prices of $650 to $716 per metric ton and $628 to $694 per metric ton, respectively. (Reporting and editing by Matt Scuffham; Alessandro Parodi)
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Greek Shipping Minister warns of alarming Situation in Strait of Hormuz
Greece's Shipping Minister on Tuesday called for the protection of seafarers and global shipping, in the wake of an "alarming situation" that has seen dozens of vessels stranded at the Strait of Hormuz as well as the surrounding area due to the escalating Iran conflict. The Strait of Hormuz has been closed to traffic for the fourth day in a row on Tuesday. This is a major artery that accounts for around 20% of the global oil and natural gas supply. Iranian media reported that a senior official of the Iranian Revolutionary Guards said on Monday that Iran would shoot at any ship trying to?pass through. Greece is the dominant force of global shipping. It controls one of the largest merchant fleets in the world. Vassilis Kilias, a Greek seafarer, said: "This is alarming, and I would wish that global shipping were?left out from war conflicts." Global shipping is related to global commerce which everyone needs. "Sailors are, of course not at fault." He stated that there were at least ten Greek-flagged vessels in the Gulf, and five more outside. Their crews included dozens of Greek sailors. Over 325 Greek-owned ships are present in the area. Kikilias said that the shipping ministry has advised vessels to avoid this region since Saturday, and 'the safety of seafarers' is a priority. He said: "We communicate with them 24/7. I'm glad 'they're ok,' but I am worried. We are also concerned, of course, as the area is dangerous." "We can't dismiss the possibility of bigger problems." Greece announced on Tuesday that it had set up a plan to return thousands of its nationals who were stranded in the region. However, their return was difficult because the airspace remains closed over the area. (Vania Turner, Alison Williams and Vania Werner contributed to this report.)
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After US and Israel attack Iran, airlines cancel flights
The global air travel industry is still severely affected by the Iran war, which forced the closures of major Middle Eastern hubs such as Dubai, Doha, and Abu Dhabi. This left tens and thousands of passengers stranded and caused the cancellation of thousands of flights. The following is a list of the most recent flights by airline alphabetically: AEGEAN AIRLINES The largest airline in Greece suspended all flights from and to Tel Aviv, Beirut and Erbil until the early morning of March 10, 2010. The airline cancelled flights from and to Dubai, Abu Dhabi and Riyadh/Jeddah up until early morning arrivals on March 7. Flights from and to Riyadh/Jeddah were also cancelled until evening arrivals on March 6. AIR BALTIC AirBaltic, a Latvian airline, said that all flights from and to Tel Aviv were cancelled until March 9. AirBaltic, a Latvian airline, said that all flights to and out of Tel Aviv have been cancelled until March 9. AIR CANADA The Canadian carrier has suspended all flights to and from Dubai, Tel Aviv and other destinations until March 22, and will resume them on March 23, AIR EUROPA All flights from Spain to Tel Aviv have been cancelled until March 9. AIR FRANCE KLM Air France has cancelled flights from and to Tel Aviv, Beirut and Dubai until March 5. KLM has suspended its flights from and to Dubai, Riyadh, and Dammam until March 9, and its flights from and to Tel Aviv have been suspended for the rest of winter. AIR INDIA The airline has extended the temporary suspension on all flights to and out of the Middle East until March 3, 2019. CATHAY PACIFIC AIRWAYS Hong Kong Airlines said that it has?cancelled' all its flights from and to Dubai, and from and to Riyadh until March 14. The U.S. airline said that it had cancelled flights between New York-JFK and Tel Aviv (TLV), through March 8, and from TLV back to JFK, through March 9. EL AL ISRAEL AIRLINES EL?AL flights and Sundor flight to and from Israel have been cancelled up until 2:00 am on March?5. EMIRATES Emirates announced that it would begin operating a small number of flights beginning the evening of 2 March. All other flights are suspended until further notice. ETIHAD AERWAYS The airline said that it had suspended all flights from and to its Abu Dhabi hub up until 10:00 GMT on March 4, 2019. FINNAIR The Finnish airline said that it has cancelled Doha flights and Dubai flights up until March 29 and is avoiding the airspaces of Iraq, Iran Syria and Israel. IAG's British?Airways has cancelled flights from Amman to Abu Dhabi, Bahrain and Dubai as well as Doha, Tel Aviv and Doha to Doha. Iberia Express is IAG's low cost airline that has cancelled all flights between Tel Aviv and Tel Aviv until March 10. INDIGO IndiGo, India’s largest airline, announced that it has suspended all flights using Middle Eastern airspace at least until March 2. The airline cancelled several flights up until March 5. ITA AIRWAYS ITA Airways suspended all flights to and out of Tel Aviv, and will not be using the airspace in Israel, Lebanon and Jordan, Iraq, and Iran after March 8. The cancellations of flights to and from Dubai were extended until March 4th. Riyadh and flights to/from Riyadh also had their flights halted from March 2 to 4. JAPAN AIRLINES Japan Airlines has suspended all flights between Tokyo and Doha scheduled for February 28 to March 7, as well as Doha-Tokyo on March 8. LOT POLISH AERLINES LOT Polish Airlines announced that all flights from and to Tel Aviv have been cancelled until March 18. The Polish airline has also cancelled flights from Riyadh and Dubai until 8 March. LUFTHANSA German Airlines has suspended flights from and to Tel Aviv, Beirut Amman, Dammam?Erbil, Tehran and?Erbil until 8 March, and flights from and to Dubai until 4 March. MALAYSIA AIRLINES Malaysia Airlines has suspended all flights from and to Doha, Jeddah and Madinah until March 4. NORWEGIAN AIR The Nordic airline plans to fly to Tel Aviv from June 15 instead of April 1 and 4, as it originally planned. PEGASUS Turkish Airlines has announced that it will cancel its flights from Iran to Iraq until March 12 and all flights to Jordan, Iraq and Lebanon up until the 6th of March. QATAR AIRWAYS The airline has suspended all flights to and out of Doha because the Qatari airspace is closed. SINGAPORE Airlines Singapore Airlines announced that it has cancelled all flights to and from Dubai until March 7. Scoot, its low-cost airline, cancelled flights from and to Jeddah until March 7. Romania's flag airline said it suspended all flights from and to Tel Aviv, Beirut and Amman until March 2. The flight schedule for March 3 to and from Tel Aviv is still being reviewed. TURKISH AIRLINES The airline cancelled flights to and from Bahrain Dammam Riyadh Iran Iraq Jordan Kuwait Lebanon Oman Qatar Syria and United Arab Emirates. TUS AIRWAYS All flights from and to Israel were cancelled by the Cypriot airline until March 8. VIRGIN ATLANTIC The UK airline cancelled all flights from and to Riyadh, Dubai and London until March 2, and the Dubai-London flight that was scheduled for March 3. WIZZ AIR The airline has halted all flights to and from Israel as well as Dubai, Abu Dhabi and Amman until March 7. (Compiled by Josephine Mason and Jamie Freed; reporting by bureaus. Editing by Barbara Lewis and Louise Heavens. Christian Schmollinger, Matt Scuffham, and Matt Scuffham.
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Druzhba Oil Pipeline damaged by fire following Russian strike, Minister says
Denys Schmyhal, Ukraine's Energy Minister, told Interfax Ukraine that the Ukrainian branch of Druzhba oil pipeline, which supplies Russian crude oil to Hungary and Slovakia, was severely damaged by fire following a Russian attack. Shmyhal said that the temperature conditions inside the oil pipe damaged the majority of the internal equipment, sensors, and other?equipment. Since January 27, oil shipments via the?pipeline, which is primarily operated in Russia, have been suspended. This follows a 'Russian attack on a?pumping installation in?western Ukraine.' The incident sparked a disagreement within the European Union as well as efforts from Hungary to block any new sanctions against Russia. Hungary has also accused Ukraine of interfering in the April elections and has blocked a 90-billion euro EU loan for Kyiv. Shmyhal, speaking to?Interfax Ukraine said that this damage (to the Druzhba pipe) is not visible from the exterior. He added that the repair costs will be calculated once the defects are examined. A spokesperson for the European Commission said that Ursula von der Leyen, President of the European Commission, will likely discuss Tuesday's?Druzhba Pipeline Problems? with Ukrainian President Volodymyr Zelenskiy.
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Saudi Aramco is rerouting crude oil away from the Strait of Hormuz according to sources
Sources said that Aramco, the Saudi oil giant, is rerouting some of its crude shipments to the Red Sea in order to avoid the Strait of Hormuz. The risk of attack has caused shipping to slow to a near-halt. Sources, including traders, buyers and analysts, say that the East-West Pipeline has a 'limited capacity' and could be attacked by Iran's allies. The pipeline can handle?5m barrels per day and was temporarily able to handle 7m bpd in 2019 after natural gas liquid pipes were converted to carry crude. According to OPEC'secondary sources, Saudi Arabia produced a little over 10 million bpd in crude oil in January. Three sources confirmed that Aramco had informed buyers of its Arab Light Crude to load their cargoes in Yanbu. The company would assess the demand and crude availability before informing the buyers. Richard Bronze, cofounder of Energy Aspects, said that there are logistical tradeoffs to be made, such as the reduction in NGLs taking away capacity, and the rate at which the Yanbu crude port on the Red Sea can sustainably load ships. Kpler data revealed that crude loadings in Yanbu reached a high of just over?1.5m bpd by April 2020. Aramco has declined to comment. A source confirmed that it shut down its largest domestic refinery in Ras Tanura after a drone strike. A source in the industry said that the company is evaluating all options, including the pipeline which runs from the Abqaiq Oilfield, to bypass the Strait. The global oil and gas price jumped Tuesday, as the U.S. and Israeli war against Iran affected?energy exports and production from the Middle East. Tehran attacked ships and a?energy facility, closed navigation in the Gulf, and forced production stops from Qatar to Iraq.
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Israel uses cargo ships for the return of doctors who have been stranded by war abroad
According to Israel's ZIM Shipping, Israeli authorities have used container ships to bring back dozens of medical personnel who were stranded abroad after the air war broke out with Iran on Saturday. An official of?ZIM told a reporter on Tuesday that the cargo ships of the company were transferring between Limassol, Cyprus, and Haifa in Israel, as part a coordinated operation between the Transportation Ministry and major Israeli hospitals, and the company. More shuttles will be planned this week to bring back hundreds of doctors to help Israelis who were injured by Iranian missiles. The official, who did not want to be identified, said: "It is the easiest way to bring them back when there aren't any flights." He added that the doctors had been away at conventions or on vacation and wanted to "get back to work as soon as possible in case of an emergency". ZIM rerouted ships away from the usual shipping routes that connect Israel with Mediterranean ports like Greece and Italy. They also made makeshift arrangements for the doctors on the cargo vessels, to ensure their safety and comfort during the 15 hour journey from Cyprus. Israel and the U.S. bombed?Iran Saturday, sparking a wave retaliatory attacks across the 'Middle East' that has left hundreds of thousands of passengers worldwide stranded due to the closure of airspace. U.S. officials and Israeli officials stated that the campaign could last for weeks. Israeli airlines are now re-routing flights to Eilat, a Red Sea resort city in southern Israel via Taba, Egypt. The passengers will then have to travel north, taking hours in a car or bus, until they reach the major cities. The official stated that "this (cargo ship) option is much more efficient and simple."
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ExPro analyst ExPro reports that Ukraine's imports of power grew by 41% in February.
ExPro, a Kyiv based analyst, said that Ukraine increased its electricity imports in February by 41% compared to January. This was due to Russian attacks against the Ukrainian power sector. Russia has increased its strikes against Ukraine's energy industry, targeting both power plants as well as substations. This forced Kyiv to cut off power supplies for businesses and import more power from the EU. ExPro stated in a report that a "majority" of the imported power came from Hungary. The supply from Hungary grew 54% from January to February. Ukraine imported electricity also from?Slovakia, which accounted for 18% of its export volume. It also imported it from Romania, Poland, and?Moldova. Denys Schmyhal, the Energy Minister, said on Tuesday that the generation cannot yet meet the demand for electricity. However, the power deficit has dropped to one gigawatt compared to 5-6 Gigawatts during winter. He didn't explain how the country reduced its deficit. (Reporting and editing by Aidan Lewis, Louise Heavens and Pavel Polityuk)
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Ryanair's O'Leary witnesses a surge in Easter bookings due to Middle East conflict
Ryanair's CEO stated on Tuesday that Easter bookings have increased to European destinations, as people avoid the Middle East because of the regional conflict. He added that he did not expect a "big" impact in the long-term. The conflict between Israel, the U.S. and Iran has disrupted flights worldwide, shut down key Middle Eastern hubs, and sent oil prices soaring. Analysts warned of weeks of disruption. Michael O'Leary said at a press conference that there has been a huge drop in bookings for the Middle East and an increase in short-haul flights within Europe. "But I do not think that it will have any fundamental impact or change on... longer-term booking trends into May June and July." Priority is to REPATRIATE CUSTOMERS TO?JORDAN O'Leary stated that Ryanair's top priority was to return customers to Jordan during this current disruption, and it did not have much spare capacity to assist with other repatriations. The Middle East conflict has pushed up oil prices by roughly 30% this year. This could drive up jet fuel costs and affect airline profits. O'Leary claimed that this wouldn't affect Ryanair, as the airline was adequately hedged against rising oil prices. He said, "We hedged our costs for the next 12 months at $67 per barrel up to March 2027." "It won't impact our low fares and won't effect our costs." Reporting by Alan Charlish and Anna Wlodarczak Semczuk, Editing by Bernadette B. Baum
Russia's August western port oil loadings to increase 9% m/m, sources state
Russia will increase oil exports via its western ports to 1.95 million barrels daily ( bpd) in August, up by some 150,000 bpd from July, although high domestic need will restrain abroad sales potential, two trade sources stated on Friday.
Russia needs to supply its own market with enough crude oil to produce motor fuels important to meet demand in the summer driving season and to renew supplies ahead of seasonal upkeep.
Russia's August oil deliveries from Primorsk, Ust-Luga and Novorossiisk will rise by 9% daily from July's strategy, Reuters estimations reveal.
Oil loadings from the 3 western ports in July were revised up by some 0.23 million bpd from the initial schedule, to some 1.8 million bpd after Lukoil, Rosneft and Gazpromneft gotten extra loading slots.
Russia's biggest personal oil company Lukoil ramped up seaborne exports last month as its materials to Europe by means of the Druzhba pipeline are presently suspended.
For August, Russia's offline primary oil refining capability is seen decreasing by a third from July to 1.7 million loads, according to Reuters calculations based upon information from industry sources.
Russia's oil loadings are likewise topped by the state's pledge to the OPEC+ group of oil-producing nations to cut output.
(source: Reuters)