TUR­BU­LENT TIMES AHEAD

Finweek English Edition - - INVESTMENT -

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.

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