, Singapore

SIA enters long-dated Brent hedges until 2022

It has hedged between 33-39% of their fuel requirements.

Singapore Airlines changed its fuel hedging policy of hedging up to 24 months. It recently announced that they have entered into longer-dated Brent hedges until 2022.

According to UOB, the airline hedged between 33-39% of their fuel requirements at between US$53-59/bbl.

"The levels are attractive and do not represent any significant premium over spot prices but amount to substantial forward commitments," the brokerage firm noted.

It furthered, "This could potentially lead to SIA becoming cautious towards dividend payout. We have assumed a 50% payout for FY17."
 

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