Fuel??

[F-16]

I heard that WJ was eliminating its fuel surcharge now that oil has dropped.

My understanding from materials I've read, indicates that WJ has hedged 50% of its fuel in the 2nd and 3rd quarters at $136.00 per barrell, and I also believe there are similar hedges for the fourth quarter.

Does anyone know how far into the future WJ has hedged their fuel - 2009, 2010?

Considering that money is being lost on the hedge right now, is it the smartest decision to remove this surcharge?

Or...

Is this a way for WJ to match a fare increase with AC, now that AC has advertised that they will include the fuel surcharge with the actual price of the ticket... AC puts the fares up by including the surcharge, WJ follows suit but states that they are getting rid of their fuel surcharge, but in the end, the fuel surcharges never really go away - they just become a convenient way of raising all fares by X % and making it stick while getting some positive press in the meantime.

[Colibri]

they just become a convenient way of raising all fares by X % and making it stick while getting some positive press in the meantime.

I know... when I read about the surcharge this afternoon I went to their website to check a flight. Fares definitely went up.

[whiteguy]

Checked both websites for the weekend of Oct 3 and the lowest was AC $83 one way and WS was $105. Low Fare Leader????

[Rotten Apple #1]

Well, so far I see Whiteguy winning in the "critical analysis" department. I mean really, will anyone ever forget such beauties as:

Checked both websites for the weekend of Oct 3 and the lowest was AC $83 one way and WS was $105. Low Fare Leader????

[Rotten Apple #1]

Perhaps Whiteguy might spend some effort and tell us if he knows what yield management means, and then we might pay attention.

[whiteguy]

Perhaps Whiteguy might spend some effort and tell us if he knows what yield management means, and then we might pay attention.

You make this so much fun!