Airlines Depend On Hedging, Fuel Surcharges As Oil Surges: Report

Airlines Depend On Hedging, Fuel Surcharges As Oil Surges: Report

Amid Russia's invasion of Ukraine, the oil price has surged to its highest level since 2008. This oil price increase comes as many carriers are forced to fly longer routings to avoid Russian and Ukrainian airspace, reported Reuters.

The price surge is another addition to airline costs when the carriers have already struggled to recover from a pandemic-related dip in demand.

On Saturday, Malaysia's AirAsia, Capital A Berhad (OTC: AIABF), introduced fuel surcharges on tickets for the first time since 2015.