# Asia-Pacific airlines brace for prolonged fuel pain as hedging cover thins

- URL: https://talkfuse.com/story/asia-pacific-airlines-brace-for-prolonged-fuel-pain-as-hedging-cover-thins/
- Published: 2026-11-13T03:22:57+00:00
- Updated: 2026-11-13T09:10:47+00:00
- Original publisher: CNA (publisher lean: Centre)
- Original article: https://www.channelnewsasia.com/asia/airlines-high-fuel-prices-hedging-contracts-expire-6548296
- Topics: Asia, World

## Key points

- Expiring hedges leave airlines exposed to costly fuel.
- Fuel is about 33 per cent of operating costs.
- Carriers differ on whether prices will stay high or ease.

## Summary

Asia-Pacific airlines face sustained pressure from high jet fuel prices as earlier hedging contracts expire, forcing carriers to weigh new protection at much higher rates. Fuel has become a larger share of operating costs, squeezing profits and raising the prospect of higher fares or reduced capacity if passengers resist further price rises.

Jet fuel is trading at about US$148 a barrel, down from nearly US$180 at October’s end but well above roughly US$85 before the Iran war began in late February. The regional airlines’ association says fuel accounts for about 33 per cent of operating costs; Singapore Airlines’ fuel bill rose 56 per cent to S$3.97 billion in the six months to September, while hedging gains reduced its effective price to US$145 a barrel. Air Astana sees prices staying high, while Japan Airlines expects them to fluctuate; ANA expects a 100 billion yen (US$626 million) increase in fuel costs this fiscal year.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.