Wary of a possible rally in crude oil prices, low-cost carrier SpiceJet has hedged almost 30% of its jet fuel requirements for the rest of the current fiscal, using a window opened by the central bank for taking future positions on the commodity that accounts for half the operational costs of an airline. While confirming the development, SpiceJet chief executive officer Sanjay Aggarwal, however, declined to share details on price and the terms of the agreement. SpiceJet is one of the two airlines that is making profits in a segment, which is estimated to post a cumulative annual loss of Rs 10,000 crore. Crude oil futures in Asia rose above $70 a barrel on Monday, and India is one of the most expensive places to buy ATF, thanks to a higher and differential sales tax structure across states. The hike in crude oil prices in international markets has forced oil marketing companies to increase ATF prices by 1.6% last week.
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