Major airlines rely on fuel hedging to manage risk of volatile fuel prices. We show that fuel hedging leads to lump sum … airline fuel costs. Our estimation results suggest that differences in reported fuel costs across airlines (due to … heterogeneous fuel hedging outcomes) lead to significant differences in ticket prices. In particular, a 10% reduction in the …

Purpose: Investigation of the relation between firms’ values and aviation fuel hedging activities via a dynamic panel … data from nine U.S. major passenger airlines representing 77.2 per cent of the U.S. domestic airline industry, in terms of … statistically significant long run relationship between firms’ values and aviation fuel hedging activities for the U.S. major …