Wary airlines count fuel costs

SPIRALLING jet fuel prices ahead of a possible war in Iraq threaten another dent in the revenues of US and European airlines which have annual fuel hedging strategies about to unwind, industry analysts say.

Most airlines sign hedge contracts on their fuel purchases to guard against price rises, a policy that will have protected them against a recent surge in fuel costs.

But many of the hedges, contracted early last year, expire in coming weeks and airlines may be reluctant to renew them at the oil market’s peak for fear of missing out on a fall in prices later in the year.