Kerosene constitutes a major cost for airlines that have got used to hedge (hedging) through derivatives markets against unforeseen developments in oil prices. This is an important part of the business relationship with investment banks such customers. The graph above, taken from the FT and research at Morgan Stanley, is interesting because it shows that the coverage of needs (ie for the year 2011) is partial and, especially, following the uneven regions of the world: more important in Europe, where it is around 60% elsewhere, where it ranges between 25 and 35%.
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