If you're saying that SWA or any company is loosing hedging power, you're basically saying that you know what the future price of oil is going to be.

I don't think any of us on this board are qualified to make the billion dollar gamble.

The conventional wisdom is that the price of oil will continue to rise some.

The conventional wisdom has been wrong before. The price of oil could go up substantially more than you think, making hedges the amount and value of hedges as important as they are this year.

It would not entirely surprise me to see some kind of global recession cause the price of oil to fall significantly. A similar thing happened in the late 90's when the Pacific rim had it's monetary crisis.

Basically, none of us have the crystal ball, so you can't really tell what the value of hedges bought (or forgone) today are.