Thai Airways said on Tuesday it would have no fuel-hedging contracts from April, down from levels of 17 percent of fuel needs in February and March now that oil prices have fallen back.

The national carrier, hit hard by surging fuel oil prices and political instability in Thailand last year, had locked in 17 percent of jet fuel requirements at around USD$75 a barrel, Raj Tanta-Nanta, its head of investor relations said.

It had hedged 41 percent at around USD$130 a barrel in the fourth quarter of 2008.

"We will resume hedging if world oil prices are likely to increase," Raj said.

Benchmark US crude oil fell to a 2008 low of USD$32.40 a barrel in December from an all-time high above USD$147 in mid-July. It traded around USD$40.40 on Tuesday.

The volatility in world prices hurt most airlines last year. Those that hedged to protect themselves against rising fuel costs ended up losing money on hedges when the price of crude oil dropped.

The International Air Transport Association (IATA) has said some carriers were unlikely to reap the full benefit of the drop in fuel prices until 2010.

Shares in Thai Airways closed up 9.9 percent at 7.80 baht on Tuesday, when the main Thai stock index fell 0.27 percent.

Dealers attributed the rise to expectations the airline's performance hit bottom in the fourth quarter of 2008 and would recover this year.

The stock hit a record low of 6.35 baht in January due to concerns about the company's health.