| dc.description.abstract | This master thesis examines the jet fuel hedging behavior in the European airline industry
using publicly available information. US companies are also included for comparisons
between the markets. The thesis concludes that jet fuel hedging airlines have higher marketto-
book ratios measured by Tobin’s Q. The authors believe that putting an absolute number on
the hedging premium, must be done with caution. The hypothesis that hedging adds more
value in periods of greater uncertainty and higher volatility is inconclusive and rejected. Of
the variables included in regressions, the papers suggest that the most important determinants
of jet fuel hedging levels are company size, dividends, debt ratio and investment levels. | en |
