Hedging

Hedging is a risk management strategy used in aviation industry to offset potential losses from adverse price movements of aviation fuel. It involves taking an offsetting position in a related aviation fuel derivative product, such as futures or options contracts, to reduce the risk of financial loss. Hedging is used by airlines, airports, and other aviation industry players to protect themselves against the volatility of fuel prices, which can have a significant impact on their profitability. By hedging, aviation companies can lock in a price for fuel, which can help them to better manage their budgets and reduce their exposure to market fluctuations.

Your Previous Searches

Random Picks

Engine Failure: Engine failure is a situation in which an aircraft's engine ceases to function during flight. This can be caused by a variety of factors, including mechanical failure, fuel starvation, or pilot error. Engine failure is a serious emergency t ... Read More >>
Crankshaft: In aviation, a crankshaft is a mechanical component that converts reciprocating motion of the pistons into rotational motion. It is a vital part of the engine and is responsible for transmitting power from the pistons to the propeller. The ... Read More >>
Technologies: In aviation, technologies refer to the various tools, systems, and equipment used to design, manufacture, operate, and maintain aircraft. These technologies include but are not limited to avionics, navigation systems, flight control systems ... Read More >>

Hedging

Your Previous Searches

Random Picks

Top News

Stars vs. Kraken October 13: Injured players, inactives, latest updates...

Stars vs. Kraken: Live stream, TV info, time and more | October 13, 2024...

Penn State comeback, Texas rout headline college football Week 7 winners and los...

Is first-class dead? The rise of ultra-luxury business class...

Stars vs. Islanders October 12: Injured players, inactives, latest updates...