Rick, you might want to read this article:
http://www.iht.com/articles/2007/11/...dge.php?page=2
A couple of interesting points about it:
SWA's current price per barrel is $52.
Other airlines had opportunities to hedge prior to 911 but didn't. SWA did. Feel free to call it luck.
Other airlines have had chances to hedge since then and haven't. Call it luck again.
I quote from the article:
"Other airlines failed to hedge last January, with oil at about $52 a barrel, but that was also an opportunity for Southwest, said Topping, the treasurer. "In hindsight, we'd have picked more up."
I guess SWA's just really lucky...over and over again.