Air Mauritius Fuel Hedging Strategies

1. Forward Contracts

Lock in fuel prices with suppliers for future delivery, ensuring budget certainty.

2. Futures Contracts

Exchange-traded standardized contracts to buy/sell jet fuel at set prices/dates; manage price risk.

3. Options Contracts

Call/put options provide right (not obligation) to buy/sell at strike price; flexibility with limited downside.

4. Swaps

Exchange cash flows based on different indices (e.g., Singapore Jet Kerosene) with airlines or financial institutions to optimize costs.

5. Combined Strategies

Blend forwards, futures, options, swaps for tailored risk profile.

6. Dynamic Hedging

Continuously monitor markets and adjust positions based on volatility and flight schedules.

Goal

Mitigate fuel price volatility, protect profitability, maintain operational efficiency.