TURBULENT TIMES AHEAD
SAA f inally released its results and the CEO commented in an interview that the airline had hedged some 30% of its fuel costs and were looking at increasing that to 60%. But that horse has bolted. The point of hedging is not to use it as a kneejerk response when things go bad. Rather, a company should have a consistent hedging policy that it follows in good and bad years in order to smooth the unknown impact, which in this case is the fuel bill.