17th Sep 2019 08:13
(Alliance News) - Wizz Air Holdings PLC said Tuesday its has increased its fuel hedge coverage above its policy minimums for the remaining months of its current financial year and for its next.
The budget airline said it took the decision to increase its hedging position to take advantage of lower fuel prices over the summer period.
Fuel hedging is used to fix a price at a chosen level for a period of time to protect against price volatility. Jet fuel is one of the biggest variable costs for an airline.
For its current year to the end of March 2020, the Central and Eastern European airline, has increased its hedge coverage to 77% from its minimum level of 50%.
This gives Wizz Air coverage over 541,000 metric tonnes of fuel, out of the 703,000 tonnes to which the airline is exposed. For the year, Wizz Air has a blended capped rate of USD692 per tonne, and a floor rate of USD633.
For its 2021 financial year, the group increased its hedge position to 43% from 40%, giving Wizz Air coverage on 621,000 metric tonnes, out of its total exposure to 1.45 million tonnes. For the period, Wizz Air will have a blended capped rate of USD661, and a floor rate of USD603.
Wizz Air shares were down 0.5% at 3,354.00 pence each early Tuesday in London.
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