It is very simple. Southwest pays $36 a barrel for 70% of their fuel, and all other airlines are paying about $74 a barrel right now.
Fuel is an airlines largest expense.
What happens when a companies largest expense doubles!


I owned Southwest's stock from March 2003, and I made about $1,000. But I sold mine off at the end of 2005. I know their fuel hedges are running out, and I don't want to have anything to do with Southwest once that advantage is gone.