FRANKFURT, Germany (AP) — Emirates airline group has hedged its exposure to higher jet fuel prices for the next three years and has secured enough supply to meet current and future needs, its CEO said Thursday as the company reported record annual profit.

“From a fuel perspective, Emirates is well-hedged until 2028-29; and we have worked with our suppliers to secure the volumes required to support our current operations and our scaling up to predisruption levels,” Chairman and Chief Executive Sheikh Ahmed bin Saeed Al Maktoum said in a statement accompanying the company’s 2025-2026 earnings statement.

Airlines have been sticker-shocked by higher fuel prices and face concerns about shortages due to Iran’s blocking of the Strait of Hormuz, through which 20% of the world’s oil normally passes. Some airlines including Air France KLM, SAS and Lufthansa have responded by dropping flights from their summer schedules.

Hedging means using financial instruments such as forward contracts to lock in prices for future deliveries.

For the financial year ended March 31, Emirates Group reported profit before tax of 24.4 billion dirham ($6.6 billion), up 7% from the previous year, on revenue of 150.5 billion dirham ($41.0) billion, up 3% on the previous financial year.