the.com/fuel hedging
betting against your own future so oil price spikes can't kill you.
means a financial strategy where airlines and shipping companies lock in fuel prices in advance to protect against volatile market swings.
from born from the oil shocks of the 1970s and 80s, when airlines learned the hard way that jet fuel is roughly a third of operating costs and prices don't ask permission before doubling.
southwest airlinesfamously hedged its way through the 2008 oil spike
can backfirelocking in high prices while market crashes loses money
uses derivativesfutures, swaps, and options on crude or jet fuel