Futures


In aviation, futures refer to contracts that allow airlines to purchase fuel at a fixed price for a future date. This is done to hedge against the risk of fuel price fluctuations, which can have a significant impact on an airline's profitability. Futures contracts are typically traded on commodity exchanges and involve an agreement between the airline and a fuel supplier to buy or sell a specified amount of fuel at a predetermined price on a specific date in the future. By locking in a price for fuel in advance, airlines can better manage their operating costs and reduce their exposure to market volatility.


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