Fuel Price Volatility


Fuel price volatility refers to the unpredictable and fluctuating nature of fuel prices in the aviation industry. Fuel is one of the largest expenses for airlines, and changes in fuel prices can have a significant impact on their profitability. Fuel price volatility can be caused by a variety of factors, including global oil prices, geopolitical events, and natural disasters. Airlines often use hedging strategies to mitigate the risk of fuel price volatility, such as purchasing fuel in advance at a fixed price or using financial instruments to lock in prices. However, these strategies can also carry their own risks and may not always be effective.


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