Aviation
Airlines remain highly exposed to jet-fuel volatility because fuel is one of their largest operating costs. Even where passenger demand is strong, a rapid rise in crude and jet cracks can materially affect profitability.nnThe impact varies according to hedging, fleet efficiency, route economics and the ability to pass costs through to passengers. For jet-fuel suppliers and buyers, the development reinforces the importance of clear pricing formulas and realistic delivery schedules.
Source: Reuters
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