Originally Posted by Packer Backer
Man, what is your problem with Southwest?? Is it because they were smart enough to purchase fuel hedges?? If fuel prices had gone the other way and Southwest was paying more than others, would you be still complain that the field wasn't level?
It didn't have anything to do with being smart...EVERY organization that uses energy in large quantities will hedge it, including all airlines. Heges are normally just a stability thing, dampen the routine fluctuations out over time to allow for easier business planning...nobody expected oil to triple in price
But post 9/11 SWA was one of the few airlines which had the credit rating to buy hedges...they have reaped a huge windfall by being the only major to have massive hedges in the last few years (cactus had some too).
It had more to do with timing than anything else.