Swiss warns of higher ticket prices as fuel hedging falls to 50%
Swiss warned that kerosene costs will push ticket prices higher, as it hedged 80% of its needs through 2026 and only 50% at the start of 2027.
Swiss International Air Lines said it has hedged 80% of its fuel needs through the end of 2026, but the hedge ratio falls to only 50% at the start of 2027.
The airline's chief executive, Jens Fehlinger, said kerosene is the carrier's largest cost item.
Fehlinger explained that this cost must be recovered through higher ticket prices, but he could not quantify the expected increase, leaving travellers facing possible uncertainty over prices.
He warned that airspace closures, engine shortages and aircraft groundings could, if they persist, lead to flight cancellations in an extreme scenario.
What do these terms mean?
Kerosene: The jet fuel used to power jet engines and one of the largest cost items for airlines.
Hedging: A financial tool under which a company agrees in advance to buy a commodity at a set price to protect itself from future price swings.
Airspace closure: A ban on aircraft crossing a given airspace for security or military reasons, forcing flights to change course.
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