ARTICLE
23 July 2025

Flying with derivatives: Keeping airports grounded in a turbulent economy

TRAction

Contributor

TRAction provides financial and regulatory technology services across Europe, Asia Pacific and Canada. We support financial firms, brokers, investment managers, banks and electricity suppliers in complying with their reporting obligations, and process millions of reportable transactions each day. TRAction acts as an intermediary between regulated financial firms and licensed Trade Repositories (TR) and/or Approved Reporting Mechanisms (ARM).
Airports use derivatives to hedge fuel, interest rate, and currency risks, ensuring smooth operations amid economic volatility.
Australia Finance and Banking

What if we told you airports use financial derivatives to keep operations running smoothly despite economic headwinds, fuel cost fluctuations, and rate volatility?

Major international airports don't just manage runways, they manage risk. Behind the scenes, derivatives help keep everything from infrastructure projects to passenger services financially on track.

Here's how airports use derivatives:

  • Interest rate swaps to manage the cost of financing terminal expansions and runway upgrades.
  • Jet fuel hedging (through airline partnerships or subsidiaries) to smooth out volatility in energy-linked revenues.
  • Currency forwards to handle foreign-denominated debt or international vendor contracts.
  • But just like flight plans, these financial strategies need strict oversight.

Every one of those trades must be reported under EMIR.

Who knew that behind every smooth landing is a financial risk management plan?

Do you need any further guidance? Get in touch with us today.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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