Jan 20 (Reuters)
Taking out complex call options or even buying a refinery are some of the measures airlines should consider as they try to combat volatile oil prices, air finance industry experts said.
Jet fuel can account for anywhere from between 20 and 50 percent of an airline's operating costs, and predicting oil prices is a headache.
"No one knows where oil prices will be in six months, let alone 10 years away," James Dempsey, Ryanair group treasurer, told a conference hosted by Airline Economics on Monday.
"Oil prices are one of the biggest risk factors in the business."
Delta Air Lines bought its own refinery in 2012 to address the risks from fuel prices.
Even though the refinery turned only a small profit for the first time in the third quarter of 2013, over 60 percent of air finance executives polled at the conference on Monday believed this was a good move.
Read the complete article at Reuters.