Earlier, the company used to hedge only for a maximum period of 24 months, according to spokesman Nicholas Ionides. “Clearly they are taking a view that oil prices will gradually go up,” said Mohshin Aziz, an analyst at Maybank Investment Bank Bhd in Kuala Lumpur. Jet fuel accounted for 26% of the company’s total expenditure last quarter, making it the single biggest cost. Shares of the airline rose as much as 2.2% to S$9.93 in Singapore, their biggest intraday gain in more than seven months. Carriers try to smooth fuel-price swings with advance purchase contracts linked to the cost of crude.

Source: The Star February 09, 2017 00:33 UTC