Company

International airline that operates a fleet of over 50 aircraft across 4 continents.

Challenge

Improve hedging strategy by using simulation-based forecasting and risk management solutions that enable advanced risk metrics and more accurate fuel cost forecasting.

SATURN

• Simulated most likely future jet fuel prices using most recent forward curves and captured market dynamics and price volatility.
• Developed dynamic hedging strategies that comply with risk policy and analyzed impacts on airline margins and risks.
• Empowered fast analysis of alternative strategies and enabled developing improved hedging and regular updates.

Impact

• Enabled advanced simulation-based analysis of structured hedging alternatives.
• Identified effective risk management strategies that significantly reduce extreme risks.
• Developed re-useable framework that enables fast updates and dynamic hedging.

SATURN Applications