Airlines adjusting hedges, fares, capacity and fleet as oil price jumps

Brent crude is trading at around $76 a barrel, up nearly 50 percent from a year ago. "At this point with rising fuel, you control costs, raise prices and you may have some fall off in demand and reduce capacity," Air New Zealand chief executive Christopher Luxon told Reuters on Monday. "I think we are seeing pricing move up internationally and certainly yields come up as well," he added.

Airlines adjusting hedges, fares, capacity and fleet as
IATA forecast passenger yields, a proxy for airfares, will rise by 3.2 percent this year, in the first annual gains since 2011, as airlines look to recoup rising costs. Image source: Reuters

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