Maybe this will clear it up for him....simple language...

Lynn Thomasson | Sentinel Staff Writer
Posted July 20, 2006
PHOTOS
Southwest Airlines
Southwest Airlines (DONNA MCWILLIAM, ASSOCIATED PRESS)
Jul 17, 2006

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Southwest Airlines soared in the second quarter on robust demand, higher ticket prices and a savvy fuel strategy, more than doubling its profit from last year.

Net income increased from $144 million in the second quarter of 2005 to $333 million this quarter -- a jump from 18 cents to 40 cents per diluted share, the airline announced Wednesday.

Southwest CEO Gary Kelly attributed the success to reduced capacity by competitors, strong demand, and the low-cost airline's ability to offset high fuel prices using hedges, a tool that helps insulate the company from the current high oil prices.

Excluding gains from hedging its fuel purchases, the company said, it earned $273 million, or 33 cents per share in the most-recent quarter.