The Conversation

Explainer: fuel hedging and its impact on airlines and airfares

Author: The Conversation

When airlines fill up, it's not always easy to work out the cost.Patrick Lauke/Flickr, CC BY-NC-ND

With oil prices on the decline, and analysts predicting record profits for the 2014/15 financial year, Qantas and Virgin Australia are under increasing pressure to abolish fuel surcharges and lower their fares.

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