No-frills airline easyJet said today that it would begin hedging its jet fuel costs and dollar exposure to make it less vulnerable to swings on foreign currency and oil markets.
'The board believes this new policy is now appropriate given the increased size of the easyJet airline business,' the firm said. 'A hedge position will be gradually developed over forthcoming months and will be primarily intended to provide protection against major fuel price and exchange rate movements.'
Oil prices soared before the war in Iraq on fears conflict in the oil-rich Middle East could cut supplies. Airlines are vulnerable to big fluctuations in the dollar exchange rate because oil and jet fuel are largely priced in dollars.
EasyJet said dollar payments relating to the purchase of aircraft would not be included in its new policy for now.
