All Nippon Airways Co. plans to boost fuel hedging to cover almost all of its needs for this business year as oil prices soar to a record, according to a senior ANA official.

The airline will increase hedging to cover 96 percent of its needs for the year ending March 31, from 80 percent at the end of last business year, Eiji Kanazawa, the Tokyo-based carrier's senior vice president for finance and accounting, said recently.

ANA expects its fuel costs will increase 13 percent this year as jet kerosene rose to a record Wednesday, topping five quarters of gains for oil. In response to the higher fuel prices, American Airlines plans to cut thousands of jobs and British Airways is urging ticket price increases.

"We are trying to limit the effects of higher fuel prices by hedging and negotiating with suppliers," Kanazawa said. "A stronger yen is also helping." The yen has gained 8.7 percent against the dollar this year.

The price of jet kerosene rose to a record $166.45 a barrel in Singapore trading Wednesday and has doubled over the past year alone.

Airlines may lose as much as $40 billion this year as higher fuel prices and too many unoccupied seats wipe out earnings, independent aviation analyst Chris Tarry said Tuesday.

ANA predicts fuel costs, including tax, will increase ¥35 billion this business year from ¥266.1 billion in the year that ended March 31. It has already hedged 50 percent of its fuel needs for business 2009.

JAL plans to increase hedges for its fuel needs to 80 percent from 70 percent for the three months beginning July 1.