What happens when airline hedges roll off during long Gulf conflicts?

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When Airline Fuel Hedges Roll Off, They Face Current Market Prices

When an airline's fuel hedging contracts expire during an extended period of conflict in the Gulf, the company is exposed to the prevailing spot price for fuel. This situation can lead to a substantial increase in operational expenditures. For instance, some airlines had previously secured fuel at US$120 per barrel through hedging, only to witness crude oil prices subsequently plummet to US$40 per barrel.

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What happens when airline hedges roll off during long Gulf conflicts?

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