SINGAPORE (Feb 8): Singapore Airlines, Southeast Asia’s biggest carrier, extended some of its fuel-hedging contracts to as long as five years, betting on an upswing in crude oil prices amid OPEC production cuts and renewed tensions between the U.S. and Iran.

The marquee airline, which reported a 36% drop in profit for the three months through December, said Tuesday that it has entered into longer-dated Brent hedges with maturity extending to 2022. Earlier, the company used to hedge only for a maximum period of 24 months, according to spokesman Nicholas Ionides.

“Clearly they are taking a view that oil prices will gradually go up,” said Mohshin Aziz, an analyst at Maybank Investment Bank Bhd. in Kuala Lumpur. “It’s out of their norm as they usually do it 18 months forward. I don’t think it’s a bad move.”

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