SW and fuel hedges

Rebel · Post by **Rebel** » Thu Apr 20, 2006 2:41 pm

This is interesting:

Southwest Airlines’ quarterly profit rose to $61 million US, compared with $59 million US a year earlier. The discount carrier reaped a $133 million US benefit from hedges that lock in fuel at below-market prices, without which the airline would have lost money in the quarter. Still, even with the hedges, its jet fuel costs rose 63 per cent in the period to $1.46 US a gallon. That remains well below what its rivals, who are mostly unhedged, paid in the period. Source: Reuters

Smitty · Post by **Smitty** » Fri Apr 21, 2006 7:56 am

Although they would have lost money without the hedge, they still deserve credit for having one in the first place.

Rebel · Post by **Rebel** » Fri Apr 21, 2006 9:22 am

Yes they certainly do according to the article I read 70% of this years fuel consumption is hedged at US$36 a barrel. By 2009, only 30% will be hedged at US$39 a barrel. To bad AC at the time didn’t have the money to hedge our fuel.

tsgas · Post by **tsgas** » Sat Apr 22, 2006 12:47 pm

The money for AC fuel hedges is much better spent on management 's perks.