WestJet extends fuel-hedging strategy to offset volatile fuel prices
Oct 13, 2005
WestJet Airlines is extending its fuel price hedging program, which allows the low-cost carrier to reduce the uncertainty caused by volatile crude oil prices.
Under the hedging program, originally announced Sept. 8, WestJet has purchase contracts representing 50 per cent of its estimated October requirement for jet fuel at an average price of 66.1 cents Cdn per litre.
For November, WestJet has hedged 25 per cent of its fuel needs at 66.3 cents a litre and for December 12.5 per cent is hedged at an average price of 63 cents per litre.
Calgary-based WestJet (TSX:WJA) said it intends to monitor the price of fuel and will continue to hedge its fuel needs as necessary.
Air Canada, which had been unable to hedge its fuel purchases while operating under bankruptcy-court protection, has begun to gradually increase the amount of its fuel requirements that are hedged.
The Montreal-based airline (TSX:ACE.B) plans to hedge a maximum of 50 per cent of its fuel requirements, Air Canada president Montie Brewer told an investment conference last month.