Mubasher: Royal Jordanian is currently working on  drafting a proposal to pursue an oil price hedge, CEO  Stefan Pichler revealed.

“We haven’t in the past, and the timing isn’t opportune, but we are proposing a hedging strategy to the board,” Pichler told Arabian Business.

Other airlines such as Lufthansa and American Airlines often employ oil price hedges in order to minimise the adverse effects of rising prices, he explained.

“It’s an ongoing process and we don’t have momentum right now so just entering a hedging strategy as prices have risen means the timing won’t be opportune,” Pichler added.

The CEO described the oil price rise in 2018 as a “big surprise”, adding “we’re hoping to still mitigate some of the damage.”

In the first half of 2018, Royal Jordanian halved its losses year-on-year to $17.9 million.