Malaysian Airlines cuts hedging programme
Malaysia's largest airline has revealed in its third-quarter 2010 earnings report that it has cut the amount of jet fuel it hedges because "the volatility of fuel price remaining a key challenge".
MAS has restructured its hedge levels to 33% at $93 per barrel (/bbl) from 40% at $100/bbl from the previous quarter, which indicates that 67% of its jet fuel remains unhedged and will be bought on the spot market.
"We are in a challenging and unpredictable industry and have to be mindful of the many
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