SWA's GAAP numbers will show a large loss this quarter as their "portfolio" of fuel hedge contracts are worth less. SWA management is careful to break out results into realized and unrealized hedging gains/losses (unrealized=contracts that settle in the future.) United has never broken out their results from unrealized gains, as their loss last quarter would have been significantly higher.
SWA's GAAP numbers are going to show a large unrealized loss this quarter - they would have needed to sell all of their hedge contracts at last quarter's prices in order to avoid it, and they wouldn't do that because they don't look at hedges as an investment, they view it as insurance.
Anyway, don't be too suprised if the GAAP numbers show a large loss for SWA this quarter. The numbers that really depict company performance do not have the unrealized gains/losses included.
If you hate SWA - enjoy the headlines!
