Quite a few airlines got stung by buying fuel contracts at the $100 plus level. These airlines have failed to benefit so far from current low prices. The exception, is 1Time. I flew 1Time from Durban last month and their prices do appear to undercut Kulula by about R100 - quite consistently.
Future hedging is likely to be tricky as currencies and oil prices oscillate - apparently randomly.
Low-cost carrier 1Time, which paid dearly for not hedging against rising oil prices in the first half of the year, is now benefiting from the lower prices. “We were criticised for not hedging earlier this year when prices were rising but now we are benefiting from that decision,” 1Time CEO Glenn Orsmond said yesterday.