Odd Lots · Friday, October 2, 2026
David Kang's innovative hedging strategy at Qatar Airways, which involved selling options and leveraging the airline's "long oil" position due to fuel surcharges, generated $130 million. This profit allowed the revenue management team to cut fares by 20%, giving the airline a first-mover advantage in the market.
“It was $130 million. And actually that year our revenue side lost 65. So if not for my hedge, we would have lost money. But on top of that, because of my hedge, right. Going out the curve, we may have lost that money at that time, but because of that hedge and making money, I was able to give the revenue department the ability to cut fares.”
“So I worked with Ankur and I gave him advantage, first mover advantage, and he took advantage of that. And he cut fares by 20% and then we led the market, right? And sorry to say, bums on seats. We sold. I mean, you know, we had every plane that was nearly 80 to 90% full. So we were able to give them that ability and they were able to make use of it.”
“So yes, if we got, if the calls got taken out or, you know, they were exercised. Yes. A surcharge would take care of that call of those calls that we sold. So we're protected there. Now, on the downside, we've sold puts. Now, if the oil goes down and we're selling puts, it's good for us anyway.”