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Airlines Face Fuel Shock as Middle East Crisis Tests Hedging Strategies

A sudden escalation in the Middle East has driven crude oil prices up nearly 40% in a week, pushing barrel prices toward $150 and sending jet‑fuel costs soaring. Fuel, the airline industry's largest variable expense, is now testing the resilience of differing risk‑management approaches. North American carriers have largely abandoned fuel‑hedging programmes, exposing them to immediate cost spikes, while many European airlines retain multi‑year hedge contracts that cushion price shocks. Asia‑Pacific airlines employ a hybrid mix shaped by local regulations and market exposure.