Most of the chapter 11 filings in the 2003 to 2006 time frame can be tied directly to the fuel hedges held by SW. They decided to use those hedges to try and drive 1 or 2 major airlines out of business. In fact that is almost a direct quote from their VP of flight ops at a line check meeting. They would have succeeded completely in their plan except for the collapse in the price of oil in 05. That is all that saved UAL, USAIR and perhaps Delta. Had SW not been hedged for years at under 40 a barrel the industry would look quite different today and average wages might be much higher.
Airline tickets are a commodity, anytime you control 20 percent of a commodity you control pricing. That goes back to Crandel's famous quote that the airline industry is the one business where you are held hostage by your stupidest competitor.