With fuel accounting for 34.4 per cent of Emirates' operating costs in financial year 2010-11, the airline is planning to focus less on fuel hedging because of volatility in oil prices, according to the airline's president Tim Clark.
Asked if the airline is still hedged, Clark told Gulf News: "I am not saying we are not hedged, but it is not to the levels that we did in the past. Nobody can predict what fuel is going to do. So we are not spending so much time on managing the risk forward as perhaps we did a few years ago, because the volatility is just too much stuff to get our mind around."
Market experts seem to agree. "If oil prices start to ease [as they are already doing], it pays to not be locked into too much going forward," said Addison Schonland, US-based aviation analyst and president of Innovation Analysis Group (IAG).
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