Originally Posted by
acl65pilot
LCC is not much better, has low cash margins and frankly has not been doing what other companies have; shoring up its loose ends.
You ain't kidding.
Should carriers rethink fuel hedges? - Philly.com
Even though jet-fuel prices jumped 29 percent year over year, the most effective hedging strategy in 2010 was not to hedge at all, US Airways president Scott Kirby said in an interview.
"We don't hedge fuel," Kirby said, "because it's just too expensive." Hedging for a year's worth of jet fuel would have cost the Tempe, Ariz., carrier about $335 million.
Without fuel hedges, US Airways posted a $447 million profit, the second-highest annual profit in the company's history.