Fuel hedge ineffectiveness refers to the loss or gain attributed to the lack of perfect correlation between the pricing movement of the commodity used to hedge (usually crude) and jet fuel. The price of jet fuel does not move in lockstep with the price of crude. Unfortunately there is no futures market or options market in jet fuel so even if they "guess" right about the price movement of jet fuel the hedge may be "ineffective."

Now that you know what it means are you still ticked off?

 

Another way to summarize the call...

We:

We are managing our capacity very prudently. We're trying to downplay the mere prospect of any additional capacity, even though we're closely eying the rest of the industry to make sure they don't steal revenue from us that we could be stealing from them. We spent the entire time trying to telegraph what the appropriate level of restraint might be for next year.

They:

The analysts are absolutely obsessed with the horrible notion we want to add any capacity at all. They didn't believe anything we said. 3% capacity restoration is f'n insane. The Deutshe Bank "analyst" (DB owns a chunk of stock) essentially told Anderson what he wanted to hear out of our mouth WRT capacity: we just hate adding any flying. Hate it, hate it, hate it. Aren't going to do it. We want to choke the consumer, by taking capacity down to one weekly route on one city pair, charge a billion per seat, and turn the money over to DB.

 

Question for the peanut gallery:


Do you think DAL might be too conservative when it comes to expanding its network?

I just flew into Denver, and the SWA expansion there is pretty amazing. Over the past few years, they've added a lot of non-stop flights out of there.

My big question is, if SWA identified and under-served market, why couldn't DAL?

 

Yes, they have expanded, but are they making any money? At last look the answer was no. SWA identified what they thought was a weak sister in Denver and thought they could attack United. It hasn't worked out as expected. They tried to buy Frontier to accelerate the expansion but it didn't work out.

 

So, did anyone else's 401k contribution not get credited to their Fidelity account last week? Funny thing is, the company contribution and my "over 50" catch-up contribution both got invested, but my regular deduction did not even though it was deducted from my paycheck.

I've got the ESS folks tracking it down, but am I the ONLY person this happened to? Me-thinks there might be a glitch from the changeover last week. I would strongly advise everyone on here to log onto Fidelity and check their transaction history.

 

...........................

 

SW was once huge in Denver. They pulled out completely and are now going back into the market. They are not adding capacity to do it however they are moving flights from other markets. SW planned on running Delta out of SLC. They were supposed to have like 250 flights a day in that market. They peaked about 130 and are now down to 34 flights a day. Much of that flying is now in Denver.

 

Mine also was not invested, though I think I read that they will correct this today and post date the transactions. The other question I have is that my Year to Date 401K contribution restarted at zero. I wonder if I'll be able to go over the max yearly contribution or if they will catch on to this. On a seperate matter, are our profit sharing checks issued annually or quarterly? Thanks

 

Same here. Just stayed there. Very nice room and they bent over backwards to treat us well. Can't ask for much more in a layover hotel. If you miss the Marriot you can walk across the sky bridge and be there in 30 seconds.

 

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Chubs;

This unfortunately is not a timely question. Competition in the airline industry seems to be a relative question. SWA has been relentless for many years. Two markets with which I am intimately familiar are Orlando and Nashville. Basically they (SWA) own them as hubs (when mainlines did before) and frankly I cannot figure out why the various mainlines can't figure out how (or are unwilling) to fight SWA on their terms. It doesn't make any sense to me, but the deck is also stacked in SWA's favor (ref LGA and other markets).

I am looking forward to SWA's direct service from CHS-BNA-CHS starting this fall. I do wish it was DAL service though.

Its a headshaker and a fair, but not timely, question.