Originally Posted by acl65pilot

As of January 31, 2011, our open fuel hedge position is as follows:
Contract Fair
Value at
January 31,
Weighted Percentage of 2011
Average Contract Projected Based Upon
Strike Price Fuel Requirements $92 per Barrel of
(in millions, unless otherwise stated) per Gallon Hedged Crude Oil
Year ending December 31, 2011
Crude Oil
Call options $ 2.05 19% $ 239
Collars — cap/floor 2.10/1.78 10 84
Swaps 2.12 9 58
Total 38% $ 381
Year ending December 31, 2012
Crude Oil
Call Options $ 1.97 1% $ 29
Swaps 2.30 1 3
Total 2% $ 32
For 2010, aircraft fuel and related taxes, including our Contract Carriers under capacity purchase agreements, accounted for $8.9 billion, or 30%, of our
total operating expense, including $89 million of net fuel hedge costs. The following table shows the projected impact to aircraft fuel expense and fuel hedge
margin for 2011 based on the impact of our open fuel hedge contracts at January 31, 2011, assuming the following per barrel prices of crude oil:
Fuel Hedge
Year ending December 31, 2011 Margin
(Increase) Received from
Decrease to Hedge Gain (Posted to)
(in millions) Fuel Expense(1) (Loss)(2) Net impact Counterparties
$60 / barrel $ 2,786 $ (496) $ 2,290 $ (126)
$80 / barrel 1,054 (230) 824 4
$100 / barrel (677) 345 (332) 387
$120 / barrel (2,409) 996 (1,413) 999
(1) Projections based on the decrease (increase) to fuel expense as compared to the estimated crude oil price per barrel of $92 and estimated aircraft fuel
consumption of 3.6 billion gallons for the 11 months ending December 31, 2011.
(2) Projections based on average futures prices per gallon by contract settlement month.