Airlines can't raise the prices of tickets sold months ago. There is still financial reason to hedge.
"All the airlines cancelling flights and adding extra charges amid jet fuel crisis"
https://www.independent.co.uk/travel/news-and-advice/jet-fue...
You have to read more than the clickbait headline
> While this figure might appear significant, it constitutes a mere 1.5 per cent reduction in total worldwide aviation capacity,
The article cites airlines which raise the prices of already sold tickets. I agree, the impacts of the current jet fuel shortage are still small.
Hedging at this point is basically done to cover the cost of tickets already sold.
The trick is to sell tickets based on the cost at time of sale, and just cancel flights when it's convenient.
When airlines cancel flights, they usually put you on a similar itinerary, not just refund your money and hope you rebook at a higher price.
That said, I don't know a lot of people that book that far in advance, even when their travel plans are well settled.
It doesn’t work that way. Canceling flights has significant business-impacting downstream effects that go beyond mitigating the loss caused by a bad bet.
"All the airlines cancelling flights and adding extra charges amid jet fuel crisis"
https://www.independent.co.uk/travel/news-and-advice/jet-fue...
You have to read more than the clickbait headline
> While this figure might appear significant, it constitutes a mere 1.5 per cent reduction in total worldwide aviation capacity,
The article cites airlines which raise the prices of already sold tickets. I agree, the impacts of the current jet fuel shortage are still small.
Hedging at this point is basically done to cover the cost of tickets already sold.
The trick is to sell tickets based on the cost at time of sale, and just cancel flights when it's convenient.
When airlines cancel flights, they usually put you on a similar itinerary, not just refund your money and hope you rebook at a higher price.
That said, I don't know a lot of people that book that far in advance, even when their travel plans are well settled.
It doesn’t work that way. Canceling flights has significant business-impacting downstream effects that go beyond mitigating the loss caused by a bad bet.