Analysis of British Airway's Hedging Strategies

Abstract

From January 2020 onwards, major air crashes have occurred in the international community. Nearly 200 people were killed in the passenger plane accident from Iran's capital airport to Ukraine's international airport alone, which shows the seriousness of the problem. How to hedge the risk for the airline company is crucial. The purpose of this article is to explore the impact of hedging strategies on British Airways in the past few years and analyze the solutions to reduce losses. We start with a description of BA, followed by a discussion about the current hedging strategies. The method of SWOT is used to investigate BA in more depth. The conclusion reached is that BA should hedge less in such a speculative environment and collaborate with other related companies.