Jet fuel prices nearing peak - Finnair

Airline Industry Information, Nov 9, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

Finland's national carrier Finnair has said that it believes that aircraft fuel prices are set to peak and then fall and that it will continue to hedge its fuel costs moderately to avoid being locked into top level prices.

European airlines have been scrambling to hedge fuel at a reasonable price as oil prices rose to USD50 per barrel but the price has recently begun to fall. Finnair's Chief Operating Officer Henrik Arle said that the carrier cannot afford to lock itself into high fuel prices when it believes prices will fall in 2005.

Arle added that the airline will continue to hedge moderately. Finnair has hedged 35% of its fuel consumption for the next six months and then 10-20% for the following six months, reports Reuters.

((Comments on this story may be sent to aii.feedback@m2.com))