An article in the Wall Street Journal noted that All Nippon Airways had reduced its oil hedging

Question:

An article in the Wall Street Journal noted that All Nippon Airways had “reduced its oil hedging to around 40% this fiscal year from 60% in the last fiscal year in a bid to capture the lower spot prices.” Why would hedging against oil price increases reduce the ability of airlines to benefitfrom a decline in the spot price of oil? Your answer should include a definition of hedging.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question
Question Posted: