Originally Posted by
Futureman
How much of SWA's profit is due to fuel hedging? I bet that it's most if not all of it. Wall Street knows they are set to expire over the next several years. I hope that SWA can raise fares, and that it won't touch salaries. I'm pretty sure that being the highest paying airline isn't part of the LCC model. It will be interesting to see the new TA.
People have been waiting on SWA fuel hedges to expire for many years. SWA was hedging well back before 2000, when it accounted for 20% of our earnings. SWA currently has hedging contracts through 2012. If you want an eye opener, compare SWA CASM vs. any other major airline, and let me know what you find...Here's a clue - we aren't taking pay concessions.