OK...the hedges will never run out...that is established. The question becomes - what happens when the price of oil goes from $120bbl to $60 in the span of a week? People are blathering on about how oil will never be below $100bbl ever again...but they do not understand the oil business. Oil was at $45bbl in the early 80's, probably higher than the current price on an inflation adjusted basis and there are other points in history where oil prices, as a percentage of peoples incomes, where higher than now probably. I know that oil went from the $45 area to $10 in the span of a month or so. This would seemingly lock in SWA's hedged price which would be much higher. I believe the contracts run 18 months or so...and I know that SWA's traders are savvy and have proably planned for this contigency, but that is where SWA would get screwed - a massive drop in price. One big oil field find, or the Saudi's opening up the pipes and the price drops dramatically and very quickly.