SAS employs fuel hedging strategy in response to rising fuel costs

    SAS investor relations manager Björn Tibell confirmed the airline employed a fuel hedging strategy in response to rising fuel costs (flygtorget.se, 20-Aug-2018). Mr Tibell stated: “Strategically, the hedge of aviation fuel aims at delaying cost increases so that we can adjust our business to new conditions, lower costs and increase revenues, and allow us to share aviation fuel price reductions as quickly as possible. According to a policy, we will ensure 40-80% of the expected 12 months of fuel demand”. The airline hedged 83% of fuel for 3Q2018 and 91% for 4Q2018.