All Nippon Airways Co. tried to protect itself as jet fuel surged to a record $181 in July. Instead, it locked in prices at almost twice the market rate.
All Nippon, the world's second-most valuable airline, has hedged 75 percent of its fuel needs for the fiscal year starting April 1 at an average of $111.73 a barrel, according to Bloomberg News calculations based on the airline's reports. Jet fuel traded at $61.75 a barrel Thursday in Singapore.
ANA joins Southwest Airlines Co., Cathay Pacific Airways Ltd. and other carriers in making wrong-way bets on fuel prices as oil tumbles to a four-year low. To recoup higher fuel costs, All Nippon and rival Japan Airlines Corp. are charging more for tickets, making budget-conscious companies and travelers less likely to fly.