12AUG2019 - NEWS - Low crude gives airlines opportunity to increase jet fuel hedging

Airlines are topping up their hedging levels in the wake of falling Brent crude, low sulfur gasoil futures and outright jet fuel swap prices, sources say. Airlines hedge the majority of their fuel costs against Brent crude but have diversified into ICE low sulfur gasoil futures and jet fuel swaps ahead of the International Maritime Organization's 0.5% sulfur cap on marine fuels at the start of next year, which expected to tighten the whole middle distillates complex.