Qantas CEO Alan Joyce stated that from a competitive position the airline “is a lot better off than a lot of airlines” (The Australian Financial Review, 04-Mar-2011). Qantas’ treasury department switched the majority of the airline’s hedging against Brent, as opposed to West Texas oil contracts. Brent crude oil has the closest correlation to Singapore jet fuel prices.
Qantas: “What’s happened in the Middle East is a shock. It’s not demand driven, but we decided that because that [the Middle East unrest] was likely to continue, the best thing was to put in more [fuel] coverage … Airlines around the world are being sold off because of concerns over fuel, but we have a lot more protection than a lot of airlines, and it’s in Brent, so from a competitive position we’re a lot better off.” Alan Joyce, CEO. Source: The Australian Financial Review, 04-Mar-2011.